Coinbase Analysts Say Bitcoin Selling Pressure Over as FTX GBTC Sale Ends

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Grayscale’s $209M Bitcoin Move Follows $43M Transaction
  • Coinbase analysts indicate potential relief from Bitcoin selling pressure.
  • Over $1.46 billion flowed into U.S. Bitcoin ETFs, signaling renewed interest.
  • Bitcoin has displayed resilience, posting a 3.5% gain in the past week.

In a recent assessment, analysts at Coinbase have noted a promising trend in the cryptocurrency market. In particular, they suggested that the downward pressures on Bitcoin and other digital assets may be nearing exhaustion. 

This insight came in Coinbase’s Weekly Market report released on Friday, providing hope for investors amid recent market turbulence. Chinese reporter Colin Wu called attention to this report on X.

The report highlighted several key developments contributing to this shift in sentiment. Foremost among them was the conclusion of FTX’s sale of its considerable Grayscale GBTC holdings. With 22 million GBTC shares now disposed of, a notable hurdle to bullish momentum has been removed.

Furthermore, Coinbase analysts pointed to a substantial uptick in net inflows into U.S. spot Bitcoin ETFs, averaging over $200 million daily in the past week alone. This influx of capital totaled $1.46 billion since January 11, signaling renewed investor interest in the market.

Also, the report drew attention to recent developments in monetary policy. It particularly cited the U.S. Federal Reserve’s decision to postpone its quantitative tightening program. Indications suggest a delay until the next Federal Open Market Committee meeting in March, followed by potential monetary easing starting in May.

According to Coinbase, the Fed’s recent announcement signals a higher likelihood of a soft landing for the U.S. economy.

Looking ahead, Coinbase analysts speculate that a combination of factors, such as the possibility of a rate cut coinciding with Bitcoin halving, could drive a rally in Bitcoin and other tokens during the second quarter of 2024.

In the last month, Bitcoin experienced a drop of over 20%, falling from a peak of $48,600 to a low of $38,740. Despite recent market volatility, Bitcoin has displayed some resilience, posting a 3.5% gain in the past week, reaching $43,730.

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