The price of Bitcoin surpassed $42,000 on January 26, driven by significant spot Bitcoin ETF inflows and a stock rating upgrade from Coinbase.
Bitcoin (BTC) was valued at $42,040.36 with a market capitalization of $824.4 billion (as of 8:05 p.m. UTC on Friday). This means a growth of 5.3% within 24 hours.
The current price of Bitcoin also represents a five-day high, as prices were close to $40,000 on January 24th and 25th and were just $38,678 on January 23rd
The overall cryptocurrency market rose by 4.6% in 24 hours. Other top ten assets posted comparable gains today: Avalanche (AVAX) up 7.3%, Solana (SOL) up 5.9%, XRP up 3.7%, BNB up 3.5%, Cardano (ADA) rose 3.3% and Ethereum (ETH) rose 1.9%.
According to data from Coinglass, the market recorded $116 million worth of liquidations in 24 hours, with Bitcoin (BTC) accounting for $43.23 million in liquidations and Ethereum (ETH) accounting for $23.23 million worth of liquidations. $52 million was responsible.
Liquidation data for January 26th via Coinglass
Gains May Be Due to ETF Flows, Coinbase Rating
Although it is not entirely known why Bitcoin has increased in value today, the inflows and outflows of spot Bitcoin ETFs are a major influence on the market.
According to a January 25 report from JP Morgan, outflows from Grayscale's GBTC ETF are now slowing and may have largely concluded. High GBTC outflows bring more Bitcoin (BTC) into the market, creating greater supply compared to investor demand. Such outflows likely contributed to the decline in Bitcoin prices in the weeks following the approval of various Bitcoin ETFs on January 10.
Conversely, inflows into other funds have taken Bitcoin off the market and could contribute to rising prices. Although most spot Bitcoin ETFs are seeing positive inflows, BlackRock's iShares Bitcoin Trust (IBIT) significantly exceeded $2 billion in total inflows on January 26th. Net inflows for all spot Bitcoin ETFs are $744 million.
Other positive developments may also have influenced crypto prices. Yahoo! Financial analysts noted that Coinbase (COIN) stock rating was upgraded by Oppenheimer & Co. The price of COIN has also increased by 3.40% today.
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