Bitcoin staged a recovery this week after falling below $40,000, a key psychological support level, earlier this week. Prices climbed over 8% off recent lows to trade above $42,000 as of Friday. The bounce brought some relief to cryptocurrency markets after a Very volatile January.
TLDR
- Bitcoin price recovered from recent lows below $40K, rising over 8% to around $42K
- Recovery was potentially fueled by slowing pace of GBTC outflows as investors finished profit-taking
- Introduction of Bitcoin spot ETFs contributing to more efficient price discovery, similar to traditional equities
- Altcoins like Ethereum mirrored Bitcoin’s price gains as markets regained some optimism
- Short-term Bitcoin price action remains uncertain as bulls attempt to reclaim key levels around $42K
The price action follows weeks of heavy selling pressure from Grayscale’s GBTC Bitcoin fund as investors withdrew funds in the wake of its conversion…
