News - Bitcoin switches to bull mode

By Ted Maas

Bitcoin switches to bull mode

Bitcoin is catching up at the beginning of the week - rising by double digits this week. What are the reasons and what happens next?

The Bitcoin market is moving again. After an initial overheating following the introduction of the first Bitcoin ETF and a subsequent correction in which the crypto currency hit a low of €35,512, Bitcoin is starting to regain momentum. At the time of writing, the No. 1 is trading at €39,922. Bitcoin is up more than 10 percent this week and seems well on its way to making up for post-ETF losses. Bitcoin's high this year was around €44,615

The expected immediate impact of ETF adoption appears to be somewhat delayed. This is not surprising, considering Flipsidecrypto's data shows that all ETF sponsors together hold about 110,000 BTC, which is the equivalent of 4.324 billion euros.

What can we expect?

There are indications that there is still room for price appreciation. Indeed, net inflows into Bitcoin ETFs have been growing for two trading days. Despite earlier selling pressure from the Grayscale Bitcoin ETF, which led to net outflows, the buyer side has regained the upper hand since Jan. 26. This is according to data from BitMEX Research. To illustrate, about 900 newly mined BTCs enter the network daily. The inflow of €234.6 million on Jan. 29 corresponds to about 5,800 BTC - more than the total new supply from six days of Bitcoin mining.

Crypto investment manager CoinShares also confirmed that selling pressure on the Grayscale ETF is easing. Total outflows from Grayscale were 2.24 billion last week, according to James Butterfill, Head of Research at CoinShares. He notes, "The data suggest that outflows are gradually decreasing."

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