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Major cryptocurrencies showed mixed trading on Thursday evening as the recently launched spot Bitcoin exchange-traded funds (ETFs) are experiencing combined negative flows for the first time since their trade debut on Jan. 11.CryptocurrencyGains +/-Price (Recorded 9:30 p.m. EST)Bitcoin BTC/USD +0.26%$40,118Ethereum ETH/USD +0.86%$2,234Dogecoin DOGE/USD -0.32%$0.078
What Happened: Funds such as BlackRocks IBIT and Fidelitys FBTC have failed to keep pace with the exits from Grayscale's GBTC.
According to data collected by Bloomberg Intelligence analyst James Seyffart, the 10 spot Bitcoin ETFs, including GBTC, experienced a net outflow of $158 million on Wednesday.
Day 9 complete for the #Bitcoin ETFs. BlackRock only took in $66 million. -$158 million outflow for the entire group which is the largest single day net outflow so far pic.twitter.com/I8dsFMs9vT James Seyffart (@JSeyff) January 25, 2024
Of the ten funds, GBTC was the only one to experience negative flows over the week, with its total bitcoin in trust dropping to 523,516 from 592,098, reported CoinDesk. Among the other nine funds, BlackRock's IBIT and Fidelity's FBTC are leading, each holding over 40,000 bitcoin as of Jan. 24, compared to 20,000-25,000 just one week ago. Both funds are also approaching $2 billion in assets under management.
However, inflows for both funds have slowed in the past few days. For example, BlackRock added merely 1,663 tokens on Jan. 24, marking its lowest daily addition since opening for business and a decline from 8,705 on Jan. 17.
Top Gainer (24 Hour)CryptocurrencyGains +/-Price (Recorded 9:30 p.m. EDT)Pyth Network PYTH/USD +13.04%$0.42IOTA IOTA/USD +11.89%$0.25Chiliz CHZ/USD +8.14%$0.11
The global cryptocurrency market cap now stands at $1.56 trillion, showing a 0.48% increase in the past 24 hours.
The S&P 500 extended its gains for the sixth consecutive day, surmounting a dip in Teslas performance. Economic indicators signified ongoing growth, propelling the broad index by 0.53% to 4,894.16, achieving yet another all-time high closing record.
The Nasdaq Composite saw an increase of 0.18% to 15,510.50.
Gross domestic product statistics revealed a robust 3.3% growth rate for the U.S. economy in the fourth quarter, surpassing the 2% projection by Dow Jones economists. Furthermore, the latest report presented encouraging inflation data. The personal consumption expenditures price index saw a 2% quarterly rise when excluding food and energy, which is the core measure favored by the Fed for assessing inflation.
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Analyst Notes: Cryptocurrency analyst Michael Van de Poppe asserts the need for greater accuracy in assessing the impact of the ETF on the markets.
"Theres some selling pressure in the short term, but in the long term, a massive amount of new money flows into the markets from new participants. As a result, #Bitcoin might push higher this cycle than we think."
He added, "Bitcoin is getting toward the final stages of this correction. We're seeing volatility decrease from here, as the markets have witnessed a 20% correction in 10 days. The range-low is still $36-39,000, and upward momentum to the halving is likely from here."
The markets need to be more accurate with the impact of the ETF.
There’s some selling pressure in the short term, but in the long term, a massive amount of new money flows into the markets from new participants.
As a result, #Bitcoin might push higher this cycle than we think. Michal van de Poppe (@CryptoMichNL) January 25, 2024
Cryptocurrency analyst and trader Ali Martinez suggests that historical patterns could provide valuable insights into the longevity of Bitcoins current bull run.
According to Martinez, if Bitcoin continues to adhere to past bullish cycles, the prevailing uptrend could persist for over a year and a half.
"If Bitcoin mirrors past bull runs (2015-2018 and 2018-2022) from their respective market bottoms, projections suggest the next market peak could land around October 2025. This implies BTC still has 600 days of bullish momentum ahead!"
If #Bitcoin mirrors past bull runs (2015-2018 & 2018-2022) from their respective market bottoms, projections suggest the next market peak could land around October 2025.
This implies $BTC still has 600 days of bullish momentum ahead! pic.twitter.com/hD3ApOg347 Ali (@ali_charts) January 24, 2024
Photo by FellowNeko on Shutterstock
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