Bitcoin falls 3.5% to $41,000 as spot Bitcoin ETF hype fades and GBTC outflows continue

Bitcoin (BTC) posted noticeable losses on January 18, a week after the first Bitcoin spot ETFs began trading on various exchanges.

BTC was valued at $41,107 as of 9:50 p.m. UTC on Thursday and reported a market cap of $805.8 billion. This decline represents a loss of 3.5% in 24 hours.

The current Bitcoin price of $41,107 represents a one-month low as the cryptocurrency was last priced at $40,893 on December 18, 2023.

The crypto market saw comparable losses as it fell 3.7% in 24 hours. Losses spread to other top ten assets: Avalanche (AVAX) lost 7.8%, Solana (SOL) lost 7.4%, Cardano (ADA) lost 4.8%, Ethereum (ETH) lost 2, 6% and XRP lost 3.4%. .

GBTC outflows, investor sentiment in play

Although the causes of BTC's recent losses are uncertain, some changes are likely related to outflows or redemptions affecting Grayscale's GBTC ETF.

Eric Balchunas, an ETF analyst at Bloomberg, provided data on Jan. 18 showing that nine spot Bitcoin funds have seen $2.8 billion in inflows so far, but this activity has been offset by outflows of $1.6 billion of GBTC, resulting in total inflows of $1.2 billion.

Balchunas claimed that spot Bitcoin ETFs are gradually “growing beyond GBTC bleeding.” Still, every Bitcoin redeemed by GBTC that remains in circulation increases the amount available in the market, which can impact prices.

Investor sentiment and activity – the waning interest in Bitcoin after the initial ETF hype – could also impact market conditions. Bryce Elder, a journalist for the Financial Times, called the GBTC outflows a “more sober explanation” but acknowledged the potential impact of investor activity. He wrote:

“Bitcoins [downward price] The decline is unpleasant for crypto promoters who said that spot ETFs would be the game changer for crypto despite having many standard excuses: taking profits, traveling rather than arriving, buying the rumor, selling the news, etc.”

Other recent events related to Bitcoin and cryptocurrencies may also have impacted investor sentiment. Notable developments from the past day include VanEck's decision to terminate his Bitcoin futures ETF and Donald Trump's opposition to central bank digital currencies (CBDC).

BTC price and market data

At press time, Bitcoin is ranked #1 in terms of market capitalization, which is also the case for BTC price down 3.16% in the last 24 hours. BTC has a market capitalization of $809.8 billion with a 24-hour trading volume of $25.19 billion. Learn more about BTC ›

BTCUSD chart from TradingView

Market overview

At press time, the global cryptocurrency market is valued at at $1.63 trillion with a 24-hour volume of $63.05 billion. Bitcoin dominance is currently at 49.59%. Find out more >

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