According to Cointelegraph: Bitcoin (BTC) price is showing a glimmer of recuperation, inching closer to $42,000 on January 21, as the market concludes a rather grim week for bullish investors. The cryptocurrency had plummeted to as low as $40,270 on Bitstamp – its lowest point since December 11 – but had risen to above $41,000 over the weekend.
Crypto analysts are keeping their eyes peeled on the weekly close, as Bitcoin continues to cope with the aftermath of the ETF launch without a decisive trend direction. Trader and analyst Rekt Capital expressed concern about BTC's potential bearish trajectory if it records a weekly close below the range low.
Given the current BTC trading volumes, Joe McCann, founder of crypto fund Asymmetric, noted that Bitcoin volumes have been significantly reduced post ETF launch. He pointed out this has resulted in the widest spread seen in a while between implied and realized volatility.
Meanwhile, the United States' spot Bitcoin exchange-traded funds (ETFs) carry on to significantly contribute to market dynamics. The ETFs recorded nearly $4 billion in assets under management since their January 11 launch, which has partially mitigated the selling impact from the Grayscale Bitcoin Trust (GBTC), now also an ETF.
Trading firm QCP Capital highlighted that a significant question now revolves around how much more of GBTC's current $25.4 billion AUM would exit. It anticipates "all eyes" to track GBTC outflows moving forward.
The report predicts that the next major events affecting the crypto market likely include BTC's mid-April halving and potential Ethereum Spot ETF approvals from May. In the interim, the crypto market may also be influenced by macroeconomic events.
