Greed

Bitcoin ETF

Bitcoin

Material

<p>Recently, Bitcoin, the flagship crypto, experienced a noteworthy setback as the bulls struggled to maintain the crucial $42,000 mark. This abrupt shift in momentum has left investors and enthusiasts questioning the underlying factors contributing to this decline.</p>
<p>Bitcoin’s price movements are influenced by a myriad of factors, including market sentiment, regulatory developments, macroeconomic trends, and technological advancements. Understanding the intricacies of why the bulls failed to sustain the $42,000 mark requires a comprehensive analysis of these elements. Here we go!</p>
<h2 class="wp-block-heading" id="bitcoin-in-trouble">Bitcoin in trouble</h2>
<p>At press time, the price of Bitcoin (BTC) is $41,488.52, with a 24-hour trading volume of $21,718,974,282.60. This reflects a -2.33% price drop in the last 24 hours and a -10.50% price drop in the last 7 days. The<a href="https://twitter.com/BitcoinFear/status/1747944459546108038" rel="noopener noreferrer nofollow" target="_blank"> Bitcoin Fear and Greed Index </a>is at 63.</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">Bitcoin Fear and Greed Index is 63 – Greed<br>Current price: $42,400 <a href="https://t.co/cvANStK9S7" rel="noopener noreferrer nofollow" target="_blank">pic.twitter.com/cvANStK9S7</a></p>— Bitcoin Fear and Greed Index (@BitcoinFear) <a href="https://twitter.com/BitcoinFear/status/1747944459546108038?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">January 18, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 </div>
</figure>
<p>The global crypto market cap is $1.72 trillion today, down 2.21% in the last 24 hours and 71.7% from a year ago. As of today, BTC’s market cap is $814 billion, reflecting a 47.39% crypto market dominance. Meanwhile, stablecoins’ market cap is $135 billion, accounting for 7.89% of the total crypto market cap.</p>
<p>BTC remains below $43,000 this week, with even institutional purchases having no impact on markets. BTC has disappointed traders after plunging 15% in two days last week following the launch of the first US spot exchange-traded funds (ETFs).</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">Liquidity Dampens Volatility<br><br>That is precisely why <a href="https://twitter.com/hashtag/BITCOIN?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">#BITCOIN</a> has been trading sideways with price pinned between $41.5k – $44k since Saturday.<br><br>By using Volume Percentile filtering in <a href="https://twitter.com/hashtag/FireCharts?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">#FireCharts</a> 2.0 (beta) we can clearly see where <a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">#BTC</a> liquidity is in the order book and where it… <a href="https://t.co/QpJ5S2zg1e" rel="noopener noreferrer nofollow" target="_blank">pic.twitter.com/QpJ5S2zg1e</a></p>— Material Indicators (@MI_Algos) <a href="https://twitter.com/MI_Algos/status/1747964187404316710?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">January 18, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 </div>
</figure>
<p>While there has been no more decline, bulls have also failed to move BTC/USD back to the top of its broader trading range, which has a ceiling of $48,000.</p>
<p>However, while examining which barriers stand in the way, trading resource Material Indicators identified a major issue: excessive liquidity around the spot price.</p>
<p>Material Indicators published a heatmap of BTC/USDT order book liquidity on Binance, the largest global exchange, indicating a cloud of bid support between $42,000 and a spot at roughly $42,500.</p>
<p>According to the heatmap, since Bitcoin went below $44,000, strong sale interest has surfaced at both that price and $45,000.</p>
<p>Material Indicators stated that there were no obvious contenders for shaking up the market in the short term.</p>
<h2 class="wp-block-heading" id="the-crypto-market-after-btc-etf-approvals">The crypto market after BTC ETF approvals</h2>
<p><a href="https://www.cryptopolitan.com/btc-etfs-pose-a-threat-to-coinbase-dominance/" rel="noopener noreferrer nofollow">Spot Bitcoin ETF</a> trading day 4 has been completed successfully, and the embryonic sector has seen significant flow, indicating a liquidity stratum among important issuers.</p>
<p>According to Eric Balchunas, Senior Bloomberg ETF analyst, net flows from Bitcoin ETFs have surpassed $1.2 billion, particularly since nine of the eleven ETF filers approved by the United States Securities and Exchange Commission (SEC) received nearly $914 million on January 18.</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">LATEST: Day Four was a good one, the ROLLING NET FLOWS grew to +$1.2b after the Newborn Nine pulled in $914b on Wed, by far their best day yet, overwhelming the $450 out of <a href="https://twitter.com/search?q=%24GBTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">$GBTC</a>. The 'Nine' have now taken in $3b and traded $5.4b in first four days (abnormally high <a href="https://twitter.com/hashtag/s?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">#s</a>). <a href="https://twitter.com/search?q=%24IBIT&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">$IBIT</a> is… <a href="https://t.co/mYBLggYlYK" rel="noopener noreferrer nofollow" target="_blank">pic.twitter.com/mYBLggYlYK</a></p>— Eric Balchunas (@EricBalchunas) <a href="https://twitter.com/EricBalchunas/status/1747956852619366616?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">January 18, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 </div>
</figure>
<p>The profits achieved on this trading day were the most since the spot Bitcoin ETFs began trading last week.</p>
<p>The fourth trading day’s inflows for Bitcoin ETFs outpaced the $450 million outflow from Grayscale’s GBTC. In total, the “Newborn Nine” had traded $5.4 billion and received $3 billion during the last four trading days. BlackRock’s IBTC has already traded for over $1 billion. Fidelity’s FBTC is close behind in second place, with Bitwise BITB coming in third.</p>
<p>Unlike other ETF issuers that have witnessed big inflows, Grayscale has seen massive withdrawals due to its 1.5% charge. Many investors are dumping GBTC, endangering the fund’s years of dominance. In addition, the asset management firm has been changing its Bitcoin holdings, sparking market speculation.&nbsp;</p>
<p>Grayscale’s dismal inflow-to-outflow ratio was unexpected for an ETF issuer that outperformed on the first trading day of Bitcoin ETFs. On that day, Grayscale dominated the market with almost $4 billion in trading volume, leaving the other Bitcoin ETF issuers with a fraction of the market. With the most recent data, BlackRock has taken the lead.</p>

Bitcoin bulls fail to hold the $42K mark – But why?

Table of Contents

Cryptopolitan_News

Other articles published on Jan 18, 2024

Coinbase CLO Grewal Argues Against SEC Overreach, Calls For Congress Oversight

Bitcoin ETFs: Promising Opportunities and Potential Pitfalls for Investors

Shiba Inu (SHIB), Bonk (BONK) and Retik Finance (RETIK) Set To Make the Next Batch of Crypto Mill...

Manta Network Hit by DDoS Attack Amid Token Listing Success

ARK Altcoin Poised for Potential Breakout: Analyst Predicts Major Rally

Tether Increases Bitcoin Reserves Amid Market Uncertainty

Join our free newsletter for daily crypto updates!