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Recent data from BitMEX Research reveals that Grayscale Investments, a key player in the market, saw the outflow from its spot Bitcoin exchange traded fund (ETF) dubbed GBTC hit a striking low on Friday, dipping to just $44 million, marking a notably welcome downturn since Jan. 11.
Spot Bitcoin ETFs gain momentum
In contrast, Friday witnessed robust activity in the market, with newly launched spot Bitcoin ETFs enjoying over $232.3 million in net inflow. Leading this charge was BlackRock’s IBIT, attracting a substantial $167.5 million in inflows. Fidelity’s FBTC followed closely with $52.5 million, while Bitwise’s BITB secured $12.0 million. This surge in inflow highlights the growing investor confidence in regulated investment vehicles within the crypto space.
The cumulative trading volume for spot Bitcoin ETFs has topped $50 billion, marking an important milestone for crypto investment products. This milestone not only indicates the growing acceptance of crypto investment by institutional and retail investors but also represents the maturation and mainstream use of digital assets as viable investment instruments.
At the time of writing, Bitcoin was trading at $51,099, experiencing a marginal decline of 0.2% over the past 24 hours. The recent market movements have sparked discussions among analysts, particularly regarding the breach of the crucial $51,500 level.
This price point had been pivotal in discussions surrounding a potential Bitcoin rally. The drop below $50,970 has raised concerns among analysts, indicating a potential shift toward a more bearish sentiment in the short term.
Nonetheless, renowned trader John Bollinger reminds investors of the cyclical nature of markets, suggesting that short-term fluctuations may not necessarily derail the long-term bullish trend.
Bitcoin whales accumulate
Amid market fluctuations, recent activity within the Bitcoin network reveals an accumulation trend among Bitcoin whales, defined as wallets holding over 100 Bitcoin and not associated with centralized exchanges.
These entities seem to be in a state of collection rather than distribution. Cryptocurrency analyst Ki Young Ju notes that the “realized price” for such a whale cohort currently stands at $40,500.
This behavior underscores a bullish sentiment in the market, indicating that key players are betting on the long-term value of Bitcoin despite short-term price fluctuations.