Has the Bitcoin Price Hit Rock Bottom or Will It Crash Further?

As Bitcoin (BTC) stages a comeback from its recent dip, the cryptocurrency market is buzzing with speculation about what lies ahead. While the past week has seen Bitcoin’s prices remain stable with almost no change, opinions among market experts are as diverse as the digital currency itself.

Here’s everything you ought to know.

CrediBULL’s Insight

Renowned analyst CrediBULL Crypto anticipates a possible surge in Bitcoin’s value, eyeing the $40,000 threshold after a recent dip to $38,000. However, CrediBULL cautiously warns against the risk of slipping below $36,000.

CrediBULL’s optimism is rooted in the recent approval of spot Bitcoin ETF filings by the U.S. Securities and Exchange Commission (SEC), introducing a new element into the market. The key question: has Bitcoin truly found its bottom amid this regulatory development?

Also Read: Weekly Spot Bitcoin ETF Report: Insights After Its First Trading Week

A Return to $49,000?

In contrast, crypto analyst James Van Straten paints a brighter picture, suggesting that Bitcoin might revisit the $49,000 milestone post-ETF approval. He attributes this potential bullish upswing to stablecoin rotation, highlighting how a subtle shift from stablecoins played a role in Bitcoin’s climb to $42,000 on January 26.

Van Straten remains optimistic about the influence of stablecoin rotation, proposing that it alone could drive BTC prices beyond the $49,000 mark in the coming days. He also emphasizes Spot Bitcoin ETF inflows, underlining their instrumental role in the recent market rebound.

However, the rise in the Bitcoin Stablecoin Supply Ratio (SSR) on Friday signals the possibility of a short-term correction due to increased selling pressure.

Outflows Fail to Dampen the Spirit

Experts delve into the impact of Bitcoin ETFs on the market, noting a net positive effect despite outflows from the Grayscale Bitcoin ETF. On January 26, 2024, Grayscale Bitcoin spot ETF (GBTC) experienced a record single-day net outflow of $671 million, contributing to cumulative net outflows reaching $5.46 billion. 

Despite this apparent setback, the broader perspective suggests that Bitcoin ETFs, as a collective, have seen more inflows, reflecting an overall positive market sentiment.

Market Recap

As of Saturday, January 27, Bitcoin briefly touched $42,000 but struggled to sustain this level, resulting in daily gains slipping from over 5% to just above 2%. The current BTC price stands at $41,747.53, indicating a 2.41% increase.

With a market capitalization of $818.73 billion and a 14.74% rise in the 24-hour trade volume to $23 billion, Bitcoin’s value remains below the day’s high of $42,209.39. The cryptocurrency world watches with anticipation, eager to see where the next turn in Bitcoin’s journey will take it.