Grayscale’s “redistribution” of Bitcoin (BTC) wealth could be one of the key negative catalysts preventing Bitcoin (BTC)’s January rally. However, this trend is definitely losing steam.
According to BitMEX Research, Bitcoin ETF net inflows reached $14.8 million
BitMEX Research, an analysis arm of premier crypto trading platform BitMEX, has released its Bitcoin ETF liquidity flow statistics. On January 26, 2023, the lowest positive inflow since launch was recorded: competitors were able to offset Grayscale's withdrawals.
The products from Fidelity, BlackRock and ARK Investments recorded the largest inflows: their investors collectively invested almost $220 million in BTC-based ETFs in just 24 hours.
The Bitcoin-based products from Franklin Templeton, Valkyrie and VanEck also recorded smaller inflows. During the same period, Grayscale's portfolio experienced an outflow of $255 million.
It should also be noted that Grayscale's daily outflows are falling for the fourth consecutive day. Therefore, the process of “converting” the over-the-counter Grayscale Bitcoin Trust (GBTC) into a full-fledged ETF may be nearing its end.
As U.Today reported earlier today, the “GBTC FUD” could be the strongest catalyst pushing the price of Bitcoin (BTC) lower. Last week it briefly fell below $37,800 after a spectacular rally in mid-January.
Bitcoin (BTC) sentiment returns to the “greed” zone
Commentators on the BitMEX Research publication are optimistic: they emphasize that these weak numbers confirm that the recent Bitcoin (BTC) price rise is being driven by retail, not ETF managers.
Trader optimism is also rising as Bitcoin (BTC) has recovered 4.4% in the last 24 hours and is attempting to overcome the $42,000 mark again.
Today, Alternative's Bitcoin Fear and Greed Index left the “Neutral” zone and returned to “Greed”; At the time of writing it is 55/100.
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