Bitcoin’s downside looks limited as GBTC outflows drop and traders shift focus to the BTC halving in April.
Bitcoin (BTC) has been volatile in January. Early on, the price rose near $49,000 in anticipation of the spot Bitcoin exchange-traded funds (ETFs) launch, but then sold off as the Grayscale Bitcoin Trust (GBTC) saw massive liquidations.
However, a positive sign is that GBTC’s outflows have been reducing in the past few days. Live data from intelligence firm Arkham shows outflows of $340 million from Grayscale’s fund, a marginal increase over Jan. 30 outflow of $270 million but way lower than the peak outflow of $641 million on Jan. 22.
Traders are likely to gradually shift their focus from the Bitcoin ETF flows to the upcoming halving in April. Pseudonymous crypto trader Rekt Capital said in a X post (formerly Twitter) on Jan. 29 that any dip in Bitcoin over the next two weeks could be the last chance to buy before the pre-halving rally kicks in.
