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Bitcoin Traders Anticipate Swing Highs as BTC Hits $42,000

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Bitcoin Traders Anticipate Swing Highs as BTC Hits $42,000

The price of Bitcoin has surged past $42,000, its highest level in almost a week, as the market rebounds from the recent sell-off caused by the launch of the spot Bitcoin ETF. According to data from Markets Pro and TradingView, Bitcoin saw a rapid increase from $39,545 on January 26th, gaining 5% to reach $41,973. This price surge coincides with a decrease in outflows for Grayscale’s GBTC spot ETF. BitMEX Research data reveals that GBTC saw outflows of $394.1 million on January 25th, a decrease from $429.3 million on January 24th and $515.3 million on January 23rd. Although the outflows remain high, January 25th marked the second-lowest figure since the launch of spot Bitcoin ETF trading on January 11th.

Senior Bloomberg ETF analyst James Sayfart shared a chart showing that premiums and discounts for Bitcoin ETFs have been narrowing over the past 10 days. This was met with appreciation from fellow analyst Eric Blachunas, who described it as a “beautiful sight.” Independent market analyst Yakuza noted that Bitcoin had successfully set a trap for bears hoping to profit from a price of $32,000. Yakuza further added that “late shorts” have already been liquidated or are in the process of being liquidated. Coinglass data supports Yakuza’s observation, showing that short positions for Bitcoin reached a liquidation value of over $34.3 million in a single day, with expectations of further increase by the end of the day. Cross-crypto short liquidations amounted to more than $77 million.

The current market trend is generating optimism among crypto investors and traders, who are hopeful that the long-term impact of spot Bitcoin ETF trading will continue to benefit the price of Bitcoin.

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