Bitcoin saw its biggest bid block in 3 years as BTC price dropped by $40k.
Bitcoin (BTC) fell below $40,000 as BTC price action tested “very significant” support after the January 25 Wall Street open.
Despite the extreme daily flow, the EFF volumes are impressive
Data from Cointelegraph Markets Pro and TradingView showed another weak start to the US session, with BTC/USD unable to recover lost ground for a long time.
Bitcoin has experienced a familiar cocktail of downside triggers, with its focus on exchange-traded funds (ETFs), now entering its third trading week.
Outflows from Greyscale Bitcoin Trust (GBTC) were around 13,000 BTC per day, lower than before.
Famous trader Daan CryptoTrades wrote in his response on X (formerly Twitter) that “personal interest will eventually slow down and end, but it will take a few more weeks until most of them disappear.”
Citing the figures, Bloomberg Intelligence analyst James Seifert added that Jan. 24 saw the largest single-day net inflow for ETFs — about $160 million.
Today's #Bitcoin sent in $GBTC/Grayscale comes out to be worth ~13K$BTC or ~520$M.
It's down from yesterday but overall still high.
The good news is that eventually this will slow down and go away, but it will take a few more weeks for most of them to disappear.
Other ETFs… pic.twitter.com/PeAYDTtQuu
— Daan Crypto Trades (@DaanCrypto) January 25, 2024
“Good news: GBTC is trending down. The bad news is that all nine are,” Bloomberg analyst Eric Balchunas continued.
“This leaves us with total ROLLING NET FLOWS of +$824m. Also ARKB and BITB crossing half a billion is impressive. A regular launch for the first month is considered a blockbuster-level success.
“Significant” Binance bids accumulate below the spot price
Analyzing the state of the BTC/USDT order book on the largest global exchange Binance, trading input material indicators that could save the bulls from a deep decline.
Related: 3 Reasons Bitcoin Hits $38.5K and Is Marked ‘ETF Dip'
It said the auction fee for a lot below the spot price was the largest seen in the last three years.
“When we have a large amount of liquidity close to price, price will pull back – and this works in both directions, it's similar to resistance – and sometimes it will wrap up here,” said co-founder Keith Allan at X.
Allan added that while ETFs are creating “noise,” liquidity is unpredictable.
“However, we are seeing a significant bidding war on price,” he said.
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