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Bitcoin’s Balancing Act: Outflows, ETFs, and Market Sentiment

Over 48,000 Bitcoin, valued at more than $4.5 billion, have been withdrawn from exchanges in the past week, signaling a potential shift in market dynamics.

As Bitcoin hovers near a critical level, many investors are closely monitoring the 50-day moving average (MA). A sustained close above this benchmark could confirm bullish momentum and signal the end of the current correction.

Profit-Taking on Binance Rises 

On Binance, profit-taking appears to be increasing, as traders holding long Bitcoin positions dropped significantly from 66.33% to 56.85% within the last 24 hours. This trend reflects growing caution among investors amid market uncertainty.

MicroStrategy’s Bold Bitcoin Play

In 2024, MicroStrategy solidified its position as a Bitcoin giant, acquiring 178,704 BTC for over $15 billion. Remarkably, 84% of these purchases occurred in Q4 as Bitcoin approached the $100,000 mark. Michael Saylor’s strategic moves not only helped stabilize Bitcoin’s price but also inspired institutions and even central banks to adopt the cryptocurrency.

ETF Impact on Bitcoin Supply

ETFs are transforming Bitcoin’s supply dynamics, acting as custodians while influencing exchange balances and miner wallets. BlackRock’s iShares Bitcoin Trust (IBIT) saw a record outflow of $332.6 million (-3,413 BTC) on January 2, 2025. Despite this, BlackRock reported cumulative 2024 inflows of $37.2 billion for its Bitcoin ETF and $3.53 billion for its Ethereum ETF.

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Market Data Snapshot  

On January 2, the Bitcoin spot ETF market experienced a total net outflow of $242 million. BlackRock’s IBIT led the outflows with $332 million, while Bitwise’s ETF saw a net inflow of $48.3 million, and Fidelity’s ETF recorded $36.2 million in inflows.

Conclusion: A Transforming Market  

As Bitcoin continues its journey toward becoming the ultimate store of value, institutional actions, ETF trends, and investor sentiment will play crucial roles in shaping its trajectory.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

Follow us on Twitter @themerklehash to stay updated with the latest Crypto, NFT, AI, Cybersecurity, and Metaverse news!

Image Source: promesaartstudio/123RF // Image Effects by Colorcinch

Will Izuchukwu

Will is a News/Content Writer and SEO Expert with years of active experience. He has a good history of writing credible articles and trending topics ranging from News Articles to Constructive Writings all around the Cryptocurrency and Blockchain Industry.

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