Bitcoin To Test $36,739 Support Before Resilient Rebound

Matrixport, a leading cryptocurrency analytics firm, made a bold prediction regarding the future of Bitcoin’s price movements. The report anticipates a dip in the market, with Bitcoin likely to fall to the crucial support level of $36,739.

According to Matrixport analysts, the anticipated decline is expected to be temporary, as they foresee a subsequent rebound from the support above level. The research highlights that despite the short-term volatility, the overall liquidity in the market and the macroeconomic environment continue to provide a supportive backdrop for the leading cryptocurrency.

One notable aspect addressed in the report is the diminished interest from TradeFi in a Bitcoin spot ETF (Exchange-Traded Fund). Initial expectations for TradeFi’s involvement were high, but the report suggests that the enthusiasm has waned. The reasons behind this shift in sentiment were not explicitly detailed in the report, leaving room for speculation and further analysis by market observers.

Another factor influencing the current market dynamics is the profit-taking behavior observed among investors in the Grayscale Bitcoin Trust (GBTC). Matrixport’s research points out that a notable number of GBTC investors are opting to capitalize on gains, which could contribute to short-term downward pressure on Bitcoin prices.

Spot Bitcoin ETFs Experience Collective Outflow

Adding to the cryptocurrency market dynamics, a group of recently launched spot Bitcoin ETFs experienced a collective outflow for the first time since their debut. Notably, funds like BlackRock’s IBIT and Fidelity’s FBTC were unable to match the pace of outflows from Grayscale’s GBTC.

Data collected by Bloomberg Intelligence analyst James Seyffart revealed a net outflow of $158 million across the 10 spot Bitcoin ETFs, including GBTC, on Wednesday. This deviation from positive inflows could be mercurial, as day-to-day flows tend to fluctuate. Data compiled from issuers’ websites indicated that the total BTC held by all spot ETFs, including GBTC, was approximately 649,000 as of January 24, down from over 660,000 a week earlier.

Of particular interest was the decline in GBTC’s total BTC in trust, falling from 592,098 to 523,516. In contrast, BlackRock’s IBIT and Fidelity’s FBTC stood out among the other funds, boasting more than 40,000 Bitcoin each as of January 24, compared to 20,000-25,000 a week prior. Both funds were also on the verge of reaching $2 billion in assets under management.

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