Despite suffering a severe decline on Tuesday, Bitcoin (BTC) has risen today – breaking through the $40,000 mark again.
Data from CoinGecko shows that the largest digital coin by market capitalization has risen above $40,000 multiple times so far on Wednesday and is currently sitting at $40,050. It is up more than 2% on the day.
Bitcoin's price has been steadily declining since Wall Street's long-awaited spot exchange-traded funds (ETFs) debuted on January 11.
First, the asset's price skyrocketed, almost reaching $49,000 for the first time since 2021. But then he suffered a hard blow. This is because Grayscale’s Bitcoin Trust (GBTC) is seeing outflows following its transition to a true spot ETF. Previously, the fund traded as a closed-end investment vehicle and investors could not redeem shares.
But now they want to cash out, experts told Decrypt. In the first few days, over half a billion dollars worth of GBTC was paid out. This puts pressure on the price of the largest cryptocurrency – and the rest of the market too.
But the selling pressure is now easing, according to the latest figures from Bloomberg ETF expert Eric Balchunas. He wrote on Twitter (aka X) last night that GBTC outflows on Tuesday were not as large as expected and were lower than Monday. This could explain why BTC is on the way higher after recent losses.
Data from Arkham Intelligence showed that at the time of writing this morning (Eastern Time), GBTC had sent a total of more than $213.8 million worth of BTC to Coinbase, its custodian.
Ethereum (ETH) has also suffered a setback since the market crash; In the last week it has fallen by more than 14%. But the second-largest digital asset is now trading for $2,235 after rising just over 1% on the day.
Other notable gainers on Wednesday include Solana (SOL), up 5% to around $87, and Avalanche (AVAX), up 8% to price above $31. According to CoinGecko, Avalanche is once again ahead of Dogecoin and is the tenth largest cryptocurrency by market capitalization.
According to CoinGecko, the total cryptocurrency market cap today stands at $1.63 trillion, up 2.8% in 24 hours.
Edited by Andrew Hayward
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