In part, the cryptocurrency’s value is impacted by outflows from BTC ETFs that appear to have stabilized.
Historically, bitcoin has seen substantial increases following halving events, as evidenced in previous years.
In the market of cryptocurrencies, the positive trend of last week continues. In the last 24 hours, the price of Bitcoin (BTC) notes a moderate increase, reaching around US$43,000, while Ethereum (ETH) shows a more pronounced rally, surpassing $2,300.
In the case of other ‘altcoins’, performance is varied. Binance Coin (BNB), Dogecoin (DOGE), and Solana (SOL) See Slight Gains, While Major Tokens as XRP, Cardano (ADA) and Avalanche (AVAX) show quotes in red. The most notable gains are seen in Tron (TRX), Polkadot (DOT), and Toncoin (TON), which have managed a rally of over 1%.
From a technical perspective, according to Javier Molina, senior market analyst at eToro, the market is in a consolidation phase within the main uptrend. Although US$41,000 was exceeded, BTC’s relative strength failed to reach US$44,000, spointing out the influence of operations through exchange-traded funds (ETF) and sales pressure from miners.
Bitcoin: the impact of ETFs
Currently, the outlook appears more stable after weeks of volatility in the ETF space. Outflows, especially at Grayscale Bitcoin Trust (GBTC), they seem to have normalizedproviding support to the prices of the main cryptocurrency and easing pressure on ‘altcoins’ affected by the Bitcoin crash.
Despite last week’s net outflows, Trading volumes remain strong, highlighting continued investor interest in these financial productsaccording to Matteo Greco, research analyst at Fineqia.
Investors are also pointing to the Chinese New Year on February 10 as a potentially significant date for the market, remembering that last year coincided with a significant rally in cryptocurrencies. Additionally, the anticipated Dencun upgrade could benefit Ethereum, according to Daniel Wang, co-founder and CEO of Taiko.
Other factors that could boost cryptocurrency prices include the future halving of Bitcoin network rewards, known as ‘halving’‘, an event historically associated with bullish cycles. Historically, bitcoin has seen substantial increases following halving events, as evidenced in previous years.
Source: Ambito
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