Bitcoin (BTC), despite taking a major hit on Tuesday, is on the rise today and has surpassed $40,000 again.
The largest digital coin by market capitalization has rebounded above $40,000 several times as of Wednesday and currently sits at $40,050, according to CoinGecko data. It rose more than 2% that day.
Bitcoin prices have been falling steadily since the long-awaited cash exchange-traded fund (ETF) hit Wall Street on January 11th.
First, asset prices soared, approaching $49,000 for the first time since 2021. But then it took a huge hit. This is because Grayscale’s Bitcoin Trust (GBTC) is experiencing outflows after being converted to a point-in-place ETPF. Previously, funds traded like closed-end investment vehicles, meaning investors could not redeem their shares.
But now they want to cash in, experts said. Decrypt. In the first few days, $500 million worth of GBTC was liquidated. This is putting pressure on the prices of the largest cryptocurrencies and the rest of the market as well.
However, recent statistics suggest that selling pressure is now subsiding. bloomberg ETF expert Eric Balchunas. He wrote on Twitter last night (aka This may explain why BTC is rising after recent losses.
As of this writing, GBTC has sent a total of $213.8 million worth of BTC to custodian Coinbase this morning (ET), according to Arkham Intelligence data.
Ethereum (ETH) also took a huge hit after the market crash. Last week it fell more than 14%. However, the second-largest digital asset is currently trading at $2,235, having surged just over 1% on the day.
Other notable gains on Wednesday included Solana (SOL), up 5% to around $87, and Avalanche (AVAX), up 8% to over $31. This makes Avalanche overtake Dogecoin as the 10th largest cryptocurrency by market capitalization, according to CoinGecko.
According to CoinGecko, the overall cryptocurrency market cap is now $1.63 trillion, up 2.8% in 24 hours.
Editor: Andrew Hayward
Stay up to date with cryptocurrency news and receive daily updates in your inbox.
