A 3% increase in the total market capitalization of cryptocurrencies indicated widespread market gains, with Bitcoin resilient against decreased selling pressure resulting from outflows in Grayscale GBTC. ETF.
On January 26, Bitcoin’s surge above $41,000 uplifted market sentiment, leading to price increases for numerous cryptocurrencies. According to CoinMarketCap, within the last 24 hours, around 10 tokens experienced double-digit gains.
Among these tokens is the Bitcoin BRC-20 token 1000SATS (SATS), which saw a substantial 21% increase. Conflux (CFX), often referred to as ‘China’s Ethereum,’ secured the second position with a notable gain of over 15%, followed closely by Ethereum Name Service (ENS) with a 14% increase.
Conflux has revealed plans for a Bitcoin L2 layer expected to launch by mid-year. ENS garnered praise from Ethereum co-creator Vitalik Buterin in early January.
Other tokens that witnessed significant price appreciation include Akash Network (AKT), Optimism (OP), Near Protocol (NEAR), Bonk (BONK), and ORDI
Is the Bitcoin sell-off over?
According to analysts at JPMorgan, consecutive negative net flows for Grayscale’s GBTC exchange-traded fund may be showing signs of slowing down, as reported by newsoviews. The data indicates that profit-taking, primarily from arbitrageurs trading GBTC’s net asset value discount, has already resulted in approximately $3 billion in outflows.
FTX estate, led by CEO John J. Ray III, also divested approximately $1 billion in Grayscale-converted Bitcoin ETF, contributing to the over $4 billion reduction in GBTC’s value in just over two weeks. Bloomberg expert Eric Balchunas has predicted a 25% decline in Grayscale’s BTC ETF market cap. GBTC currently holds a value exceeding $20 billion, including Bitcoin.
There may also have been a shift towards ETFs with lower fees. Grayscale imposes an industry-high fee of 1.5%, while competitors offer significantly lower fees, typically ranging from 0.21% to 0.35% after fee waivers.
