Bitcoin's Price Dips Below $40,000 Amidst Selling Surge Despite Spot ETF Inflows

Bitcoin (BTC) has witnessed a decline below $40,000, marking its lowest point since December. Despite substantial inflows into newly launched spot exchange-traded funds (ETFs) on January 11, the selling pressure has outweighed buying sentiments.

After the spot bitcoin ETFs were introduced, BTC surged to $49,000 momentarily but has since been on a downward trajectory, breaching the $40,000 threshold. Despite this recent dip, Bitcoin still maintains a value over double from its levels a year ago.

Although the new spot ETFs, notably BlackRock's (IBIT) and Fidelity's (FBTC), have accumulated more than $1 billion in assets under management within a week, this positive influx is contrasted by a multi-billion dollar outflow from Grayscale's GBTC product. Investors seem to be taking profits or transitioning to alternative, lower-cost investment vehicles, impacting existing spot bitcoin exchange-traded products and futures-based ETFs like ProShares' (BITO).

As Bitcoin's trend turns bearish for the first time since October 2, 10x Research suggests a potential decline into March towards $38,000. This prediction aligns with a cautious outlook for the first quarter of 2024, emphasizing the need for vigilance in the rapidly evolving cryptocurrency landscape.$BTC #BTCETFApproval