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Bitcoin lags at $43,000 as ETF volumes start to decline

Published 02/02/2024, 10:33
© Reuters.  Bitcoin lags at $43,000 as ETF volumes start to decline
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Proactive Investors - Bitcoin (BTC) was pulled up from an intraday low of less than $42,000 to close the Thursday session 1.2% higher.

Although Friday morning trades have been sluggish, the BTC/USD pair remains just below $43,000, straddling the 50-day moving average (MA) trend line.

The 50-day MA, which represents the average closing price of the past 50 trading sessions, remains a key battleground for the world’s largest cryptocurrency, as the bulls try to capture some of the post-ETF approval hype that has so far eluded the market.

Binance’s order book also shows a large amount of sell orders at $44,000, putting further pressure on the bulls.

Ethereum (ETH) was dragged up from intraday lows of $2,240 to close slightly above the $2.300 price point, where it has remained this morning.

In the broader altcoin space, Solana (SOL) added more than 5% overnight, closely followed by Avalanche (AVAX) and Cardano (ADA).

Chainlink (LINK) soared ahead of the market by gaining more than 15%.

In the ETF space, data shared by Bloomberg’s James Seyffart shows that total trading volumes across all 10 products fell below $1 billion for the first time on Thursday.

Nearly three weeks post-approval, total inflows are $1.46 billion, heavily offset by over $5.5 billion in outflows from the Grayscale Bitcoin Trust (GBTC).

GBTC is witnessing large-scale cash redemptions for its excessive 1.5% management fee, compared to 0.25% on offer from BlackRock and other competing ETF managers.

Removing GBTC’s impact shows total inflows of $7.1 billion.

Global cryptocurrency market capitalisation currently stands at $1.65 trillion, with bitcoin dominance at 52.6%.

Read more on Proactive Investors UK

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