According to Cointelegraph: Bitcoin's price has reached over $42,000, its first time crossing this threshold in almost a week as the market begins to rebound from a sell-off linked to the launch of spot Bitcoin exchange-traded funds (ETFs).
Based on data from Cointelegraph Markets Pro and TradingView, Bitcoin experienced a swift rise from $39,545 on January 26, marking a 5% increase to trade at $41,973. This uptick coincides with a decrease in outflows from Grayscale's GBTC spot ETF, a potential sign of market recovery.
Outflows from GBTC were recorded at $394.1 million on January 25 by BitMEX Research, down from $429.3 million on January 24 and $515.3 million on January 23. Although these outflows remain significantly high, the figure from January 25 represents the second-lowest since the debut of spot Bitcoin ETF trading on January 11.
In response to a chart demonstrating the compression of premiums and discounts for Bitcoin ETFs over the last 10 days, analyst Eric Balchunas hailed it as "a beautiful sight."
Yakuza, an independent market analyst, suggested that BTC had successfully lured bears hoping for a price drop to $32,000 into a trap, stating, "Late shorts already liquidated or about to.” Indeed, CoinGlass data indicates that short-position liquidations for Bitcoin have already surpassed $34.3 million for the day, with a higher final total still very much expected.
These market trends fuel optimism among crypto investors and traders, who are hopeful for Bitcoin's price to benefit from the longer-term influence of spot Bitcoin ETF trading.
