Bitcoin, priced at $46,288, failed to break out of its established range on the day the United States approved its first spot Bitcoin exchange-traded fund (ETF). Despite the price targets for the day focusing on $48,000, Bitcoin remained below this figure. However, exchange statistics reveal that traders and miners were not taking any chances.
According to Gaah, a contributor to analytics platform CryptoQuant, Bitcoin miners were insuring themselves against volatility. He noted a net inflow of approximately 10,000 BTC into miners’ wallets before the official approval of the Bitcoin Spot ETF. Following the approval, there was a net outflow of around 9,500 BTC from miners’ wallets. This outflow marked the largest net decrease of 2024 so far and contributed to an existing downtrend in miners’ BTC balances.
On-chain analytics firm Glassnode reported frenzied trading activity among exchange users. On January 10, the proportion of transaction volume accounted for by exchanges may have reached a new high of over 78%. The previous day, it had already reached unusually high levels, with 76.4% of Bitcoin on-chain volume flowing in and out of exchanges.
Despite the price remaining rangebound, commentator British HODL suggested looking to the immediate and longer-term future for bullish signals. He noted that the start of ETF trading on January 11 could bring associated capital inflows. He argued that the lack of price movement does not necessarily mean that the ETF was ‘priced in’. He suggested that this could be judged at the halving – if the price remains the same between now and then, it could be said that the ETF was ‘priced in’.
British HODL was referring to the block subsidy halving event due in April, which will cut the ‘reward’ paid to miners per block by 50% to 3.125 BTC. Some believe that the $48,000 price may endure until that time. It should be noted that every investment and trading move involves risk, and individuals should conduct their own research when making a decision.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | British HODL, Gaah |
| Companies | CryptoQuant, Glassnode, Cointelegraph, MicroStrategy |
| Currencies | Bitcoin |
| Securities | None |
