Bitcoin

James

<p>The Bitcoin price has been experiencing a phase of stagnation over the past days, leaving investors and analysts searching for the underlying causes. Three key factors can be seen as central to explaining Bitcoin’s current sideways trading trend:</p> 
<h2 id="1-etf-inflows-are-offset-by-gbtc-selling-but-for-how-much-longer">#1 ETF Inflows Are Offset By GBTC Selling, But For How Much Longer?</h2> 
<p>The spot Bitcoin ETFs continue to be the dominant theme on the market, and <a href="https://www.newsbtc.com/news/bitcoin/grayscale-bitcoin-etf-579-million/" target="_blank" rel="noopener ">Grayscale</a> in particular, with its GBTC, remains the focus of analysts. While the ETF inflows continue to be record-breaking, the Bitcoin price remains flat. One of the main reasons for this is presumably the outflows on GBTC, which is viewed as overpriced with its fee of 1.5% per year (compared to 0.25%) by other issuers.</p> 
<p>Thomas Fahrer of Apollo <a href="https://twitter.com/thomas_fahrer/status/1747796165368914095" target="_blank" rel="noopener nofollow">pointed out</a> the significant flow discrepancies in the market: “In three days of trading. IBIT +16K BTC, FBTC +12K BTC, BITB +6.7K BTC, ARKB +5.3K BTC, GBTC -27K BTC. GBTC BTC is flowing but not enough to sustain the other ETFs. Supply shock inbound imo.”</p> 
<p>Alessandro Ottaviani <a href="https://twitter.com/AlexOttaBTC/status/1747871251471671367" target="_blank" rel="noopener nofollow">provided</a> further insights, stating, “Bitcoin inflow in the ETFs: +47k, Bitcoin outflow from Grayscale: -27k, net inflow: 20k. […] Soon or later I expect Grayscale outflow stopping or reducing significantly. Those who have Grayscale GBTC were already into Bitcoin and therefore I think they already made the decision to sell, the execution of which should happen not so much later than the launch of the ETF.</p> 
<p>Bloomberg analysts James Seyffart and Eric Balchunas <a href="https://twitter.com/JSeyff/status/1747753797944815646" target="_blank" rel="noopener nofollow">expect</a> a portion of GBTC outflows to migrate to other Bitcoin exposures, highlighting the complexities of fund accounting and settlement delays in tracking these movements. They noted, “GBTC has crossed $1.1 billion in outflows…We expect a meaningful percentage of those assets to find their way back into Bitcoin exposure, mostly other ETFs.”</p> 
<h2 id="2-bitcoin-miners-sell">#2 Bitcoin Miners Sell</h2> 
<p>Ali Martinez has spotlighted the intensified selling activity by <a href="https://www.newsbtc.com/bitcoin-news/bitcoin-miners-show-accumulation-again-bullish-sign/" target="_blank" rel="noopener ">Bitcoin miners</a> as another factor influencing the current price stagnation. Recent on-chain data indicates that miners have significantly increased their Bitcoin sales.</p> 
<p>Martinez <a href="https://twitter.com/ali_charts/status/1747580480868819313" target="_blank" rel="noopener nofollow">commented</a> on X (formerly Twitter), “Bitcoin Miners in Selling Mode: Recent on-chain data from Cryptoquant indicates a substantial increase in selling activity by BTC miners.”</p> 
<img loading="lazy" decoding="async" class="wp-image-570129 size-full" src="https://www.newsbtc.com/wp-content/uploads/2024/01/GECmf3yWUAAaHVB.jpg?resize=1410%2C904" alt="Bitcoin miners selling pressure" width="1410" height="904" srcset="https://www.newsbtc.com/wp-content/uploads/2024/01/GECmf3yWUAAaHVB.jpg?resize=1410%2C904?w=1410 1410w, https://www.newsbtc.com/wp-content/uploads/2024/01/GECmf3yWUAAaHVB.jpg?resize=1410%2C904?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/01/GECmf3yWUAAaHVB.jpg?resize=1410%2C904?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/01/GECmf3yWUAAaHVB.jpg?resize=1410%2C904?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/01/GECmf3yWUAAaHVB.jpg?resize=1410%2C904?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/01/GECmf3yWUAAaHVB.jpg?resize=1410%2C904?w=1140 1140w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1"> 
<p>Notably, the shift in miner behavior is consistent with historical trends, where miners sell their holdings to manage cash flow or capitalize on price increases during market rallies.</p> 
<h2 id="3-consolidation-phase-following-etf-mania">#3 Consolidation Phase Following ETF Mania</h2> 
<p>The market is currently undergoing a consolidation phase after the euphoria surrounding Bitcoin ETFs, which led to an 82% rally. Such a phase is considered natural and mirrors historical patterns seen in other markets, like the <a href="https://www.newsbtc.com/news/bitcoin-price-if-spot-etf-is-approved-gold-story/" target="_blank" rel="noopener ">first gold ETF</a>.</p> 
<p>Although gold initially recorded an increase of around 6%, it then took a full nine months to start the actual rally, which almost quintupled the price. The same goes for the Bitcoin ETFs. It will take some time before the marketing machine of the asset managers starts up and new institutional investors can be convinced of the new asset class.</p> 
<p>Analyst Skew <a href="https://twitter.com/JSeyff/status/1747753797944815646" rel="nofollow">provided</a> a technical perspective, <a href="https://twitter.com/52kskew/status/1747650927035855189" target="_blank" rel="noopener nofollow">stating</a>, “BTC 4H: Remaining flexible till trend confirmations, however not looking good for the bulls without 4H 200EMA reclaim &amp; RSI below 50. Yearly open [is] still very important for overall risk-reward. Above is good with bullish confirmations. Below is bad for risk &amp; with bearish confirmations leads to downtrend (hedge mode). Pivotal area for 1H – 4H trend ~ $42.5K”</p> 
<p>At press time, BTC traded at $42,684.</p> 
<img loading="lazy" decoding="async" class="wp-image-570127 size-full" src="https://www.newsbtc.com/wp-content/uploads/2024/01/BTCUSD_2024-01-18_11-36-14.png?resize=3628%2C1673" alt="Bitcoin price" width="3628" height="1673" srcset="https://www.newsbtc.com/wp-content/uploads/2024/01/BTCUSD_2024-01-18_11-36-14.png?resize=3628%2C1673?w=3628 3628w, https://www.newsbtc.com/wp-content/uploads/2024/01/BTCUSD_2024-01-18_11-36-14.png?resize=3628%2C1673?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/01/BTCUSD_2024-01-18_11-36-14.png?resize=3628%2C1673?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/01/BTCUSD_2024-01-18_11-36-14.png?resize=3628%2C1673?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/01/BTCUSD_2024-01-18_11-36-14.png?resize=3628%2C1673?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/01/BTCUSD_2024-01-18_11-36-14.png?resize=3628%2C1673?w=2048 2048w, https://www.newsbtc.com/wp-content/uploads/2024/01/BTCUSD_2024-01-18_11-36-14.png?resize=3628%2C1673?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/01/BTCUSD_2024-01-18_11-36-14.png?resize=3628%2C1673?w=1140 1140w, https://www.newsbtc.com/wp-content/uploads/2024/01/BTCUSD_2024-01-18_11-36-14.png?resize=3628%2C1673?w=3000 3000w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1">

Why Is Bitcoin Price Trading Sideways? 3 Key Factors

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