As the crypto market correction ensued, most tokens experienced stagnant trading ranges while the recently approved spot Bitcoin ETFs stepped up buying Bitcoin.
The spot Bitcoin ETFs sustained the momentum in the crypto market as they kept buying Bitcoin over the last few days. Amidst the current crypto market correction, BTC’s price has consolidated below the $40,000 trading level. On the other hand, outflows from the Grayscale Bitcoin Trust had slowed down, claimed analysts. If it reduces drastically, BTC may see a price jump soon.
Meanwhile, a recent research report underlined the bullish narratives in Ethereum. Although ETH has lost some value in the last few days, its outlook is positive, according to the report. It also dwelled on the extremely high returns of Solana in 2023. SOL had reclaimed most of its market share last year.
It further stated, “ETH also has seen increased activity in derivatives market, signaling a possible shift in capital flows. Bitcoin remains dominant in open interest and trade volumes, however ETH has regained some ground since the ETF approvals.”
Although BTC may soon face a price test, the improving demand from the spot ETFs may hedge its losses. Buyers could still defend BTC’s support aggressively in the next few days and soon attempt to take it across $40,000.
BTC/USD 1D price chart
Bitcoin is currently trading at around $39,870 on January 25, 2024, with BTC/USD trading higher by a margin of 0.7% in the last 24 hours. Bitcoin’s market cap was trading at around $782 billion.
BTC/USD is trading lower than its 20-day EMA (43,029.94), as BTC’s 24-hour volume was at around $20 billion. The crypto market cap decreased by around 0.08%, trading above $1.54 trillion. BTC’s year-to-date returns are at -5.04%.
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