Traders witnessed crypto fund outflows, which could have impacted sentiments negatively, becoming a prime reason for BTC’s price dip in the crypto market.
Crypto fund outflows, emerging from the spot Bitcoin ETFs, had a likely role to play in the overall dip in the crypto market. According to analysts, outflows in the ETFs were picking up gradually. As a result, traders and investors in the market may have sold part of their holdings to prevent further losses. Meanwhile, the ETFs have still seen total net inflows to date, even after the increasing sell-offs.
A report by a leading economic daily revealed a bankrupt exchange was behind the outflows in the Grayscale Bitcoin Trust. Moreover, experts claim the trend may continue till token prices stabilize in the crypto market. Until now, token prices have taken minimal losses in the last 24 hours.
On the other hand, an annual outlook by a crypto firm predicted more Bitcoin-based stablecoin projects in 2024. It said, “We anticipate 2024 as a pivotal year for Bitcoin in the stablecoin arena,” and added, “Altogether our prediction is that a Bitcoin project focused on competing in the modern stablecoin sector will be made easily accessible to users this year.”
The report said stablecoin adoption and accessibility could increase manifold, promoting crypto adoption along the way.
BTC/USD 1D price chart
Bitcoin is currently trading at around $40,000 on January 23, 2024, with BTC/USD trading lower by a margin of 2.6% in the last 24 hours. Bitcoin’s market cap was trading at around $783 billion.
BTC/USD is trading lower than its 20-day EMA (43,383.07), as BTC’s 24-hour volume was at around $29 billion. The crypto market cap decreased by around 2.74%, trading above $1.57 trillion. BTC’s year-to-date returns are at -4.71%.
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