The potential breakdown of BTC price looms around $40,000 as Bitcoin outflows increase with the GBTC ETF taking decisive steps

Bitcoin  $BTC $40,038 kept $40,000 retests coming at the Jan. 22 Wall Street open amid ongoing BTC sales from asset manager Grayscale.

Outflows from the Grayscale Bitcoin Trust (GBTC) are anticipated to surpass $700 million, marking a new six-week low of $40,324 on Bitstamp, as BTC prices experience sustained selling pressure. The decline in assets under management for GBTC, attributed to ongoing changes following its transition approval to a spot Bitcoin exchange-traded fund (ETF), led to outflows of 19,250 BTC ($785 million) on January 22, according to live data from crypto intelligence firm Arkham. Some sources suggest a higher daily outflow, with Alex Thorn of Galaxy estimating it at a preliminary $700 million. ETF analyst Eric Balchunas expresses concerns about the large-scale transactions, suggesting potential challenges for other ETF players in absorbing such sizable amounts.

Some individuals found contentment in the advancements achieved by the recent spot ETF group, as inflows continued to remain positive.

As of January 19, GBTC still held over $20 billion in assets, and its share price, in relation to BTC spot, exhibited a mere 0.27% discount, according to data from the Bitcoin Treasuries statistics resource.

The BTC price is under significant pressure according to bearish predictions. Despite this, the strength of BTC managed to maintain support at $40,000, even as there is growing belief that it could drop to lower levels. Many traders see the mid-$30,000 range as an attractive opportunity to go long on BTC. Examining the BTC/USDT order book on Binance, the largest global exchange, trading resource Material Indicators observed a rise in bidder interest at $38,500.

“Bitcoin has seen a lot of violent moves during the first 1-2 hours after the US Market Open. This is likely because many of the ETF flows, tend to occur near the start and end of a trading day,” popular trader Daan Crypto Trades reasoned