Bitcoin breaks past $42k, hitting a five-day high Bitcoin breaks past $42k, hitting a five-day high
Bitcoin ETF flows and upgrades to Coinbase's stock rating are likely at play.
2 min read
Updated: Jan. 26, 2024 at 8:56 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The price of Bitcoin surpassed $42,000 on Jan. 26 amidst significant spot Bitcoin ETF flows and an upgrade to Coinbase’s stock rating.
Bitcoin (BTC) was valued at $42,040.36 with a market cap of $824.4 billion at 8:05 pm UTC on Friday. That marks 5.3% growth over 24 hours.
Bitcoin’s current price also represents a five-day high, as prices were close to $40,000 on Jan. 24 and 25 and as low as $38,678 on Jan. 23
The cryptocurrency market in its entirety was up 4.6% over 24 hours. Other top ten assets saw comparable price gains today: Avalanche (AVAX) was up 7.3%, Solana (SOL) was up 5.9%, XRP was up 3.7%, BNB was up 3.5%, Cardano (ADA) was up 3.3%, and Ethereum (ETH) was up 1.9%.
The market saw $116 million in liquidations over 24 hours, according to Coinglass data, with Bitcoin (BTC) accounting for $43.23 million of liquidations and Ethereum (ETH) accounting for $23.52 million of liquidations.
Gains may be due to ETF flows, Coinbase rating
Though it is not entirely known why Bitcoin has gained value today, spot Bitcoin ETF inflows and outflows are one major influence on the market.
Outflows from Grayscale’s GBTC ETF are now slowing and may have largely concluded, according to a report from JP Morgan on Jan. 25. High GBTC outflows put more Bitcoin (BTC) onto the market, providing a larger supply in comparison to investor demand. Such outflows likely contributed to falling Bitcoin prices in the weeks following various spot Bitcoin ETF approvals on Jan. 10.
Conversely, inflows into other funds have taken Bitcoin off the market and may be helping to raise prices. Although most spot Bitcoin ETFs have positive inflows, BlackRock’s iShares Bitcoin Trust (IBIT) notably crossed $2 billion in total inflows on Jan. 26. Net inflows for all spot Bitcoin ETFs amount to $744 million.
Other positive developments may have influenced crypto prices as well. Yahoo! Finance analysts noted that Coinbase (COIN)’s stock rating has been upgraded by Oppenheimer & Co. The price of COIN is also up 3.40% today.
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Author 
Mike Dalton
Before transitioning to crypto writing in 2018, Mike studied library and information sciences. Currently, he resides on Canada's West Coast.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
JPMorgan
JPMorgan Chase & Co is a global leader in financial services, offering solutions to the world’s most important corporations, governments, and institutions in more than 100 countries.
Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
BlackRock
BlackRock, synonymous with global asset management, is an American multinational investment management corporation based in New York City.
Grayscale Investments
Established in 2013 by Digital Currency Group, Grayscale Investments is a trusted authority on digital currency investing and cryptocurrency asset management.