Overview

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Bitcoin dropped by more than 7% to under $42,000 before rebounding to $42,781 as of press time. In adherence to the Trust Project guidelines, BeInCrypto is As per the chart, Large Holders NetFlow (addresses holding over 0.1% of BTC’s circulating supply) were down by 123% for the week, hinting that most address groups The premier cryptocurrency fell below $42,000 on Friday, January 12, reflecting a decline of 7% in the past 24 hours. The underwhelming performance of the Bitcoin price since BTC spot ETFs Bitcoin is seeing an an early-week price correction, with the digital asset slipping below $42,000 on Monday. According to analysis from ETC Group, the price But there may be a 20% fall in the Bitcoin network’s hashrate after the BTC halving, which would lower the central point of its estimated production cost range to $42,000 Its price dropped dramatically during the past week, from US$49,000, the peak it reached two years ago, to around US$42,000, or roughly 15%, Bitcoin is now the If the price can rebound back to $45,000, then BTC might retest 49,000 or even trend higher to $52,000. But that possibility seems unlikely in the coming days as selling

Why is Bitcoin Stuck Below $42,000 Despite $330 Million Outflows?

Bitcoin\'s price action has been a source of frustration for many investors recently. Despite significant outflows of $330 million, the premier cryptocurrency is struggling to break above the $42,000 mark. Bitcoin dropped by more than 7% to under $42,000 before rebounding to $42,781 as of press time. This underwhelming performance of the Bitcoin price since BTC spot ETFs has left many wondering what forces are at play.

Recent Price Fluctuations: A Closer Look

Bitcoin is seeing an early-week price correction, with the digital asset slipping below $42,000 on Monday. The premier cryptocurrency fell below $42,000 on Friday, January 12, reflecting a decline of 7% in the past 24 hours. Its price dropped dramatically during the past week, from US$49,000, the peak it reached two years ago, to around US$42,000, or roughly 15%, Bitcoin is now the subject of intense market scrutiny.

Possible Contributing Factors

Several factors may be contributing to Bitcoin\'s inability to sustain a price above $42,000:

  • Large Holder Activity: As per the chart, Large Holders NetFlow (addresses holding over 0.1% of BTC’s circulating supply) were down by 123% for the week, hinting that most address groups are currently reducing their holdings. This selling pressure contributes to the downward price movement.
  • Profit Taking After ETF Approval: The initial excitement surrounding the approval of Bitcoin spot ETFs may have led to a "sell the news" event, with investors taking profits and contributing to the downward pressure.
  • Miner Activity Post-Halving Speculation: According to analysis from ETC Group, the price...But there may be a 20% fall in the Bitcoin network’s hashrate after the BTC halving, which would lower the central point of its estimated production cost range to $42,000, potentially influencing their selling behavior.

What\'s Next for Bitcoin?

The future direction of Bitcoin\'s price remains uncertain. If the price can rebound back to $45,000, then BTC might retest 49,000 or even trend higher to $52,000. But that possibility seems unlikely in the coming days as selling persists. It\'s crucial to monitor whale activity, regulatory developments, and macroeconomic factors to gain a clearer understanding of potential price movements.

In adherence to the Trust Project guidelines, BeInCrypto is committed to providing accurate and unbiased information.

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