Bitcoin Rallies With Record ETF Inflows Post $60K Dip

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Bitcoin Spot ETFs have witnessed the highest inflows in a month, following a recent dip under $60,000. Despite a 20% drawdown over the last month, long-term holders have persisted in buying the dip. According to CryptoQuant, these holders have been accumulating the digital asset at rates not observed since April 2023. Early July saw the price of a single bitcoin drop into the mid $50,000s, where it has since stabilized, thanks to the significant liquidity being poured into it.

The resurgence in Bitcoin spot ETFs inflows has been notable, with levels not seen since early June, when bitcoin hovered around $70,000. Over the past three days, ETF providers have absorbed over $600 million. Leading the pack, BlackRock accounted for more than $200 million of this figure.

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The recent drop in Bitcoin’s value can likely be attributed to sell pressures from the now-defunct exchange Mt. Gox beginning repayments to investors impacted by a hack that resulted in nearly a million bitcoins being lost a decade ago. Additionally, the German government’s decision to offload a stash of bitcoins acquired from criminals has added to the sell pressures. Despite selling billions of dollars worth of the cryptocurrency, the German government still retains around $1 billion in bitcoin.

Bitcoin seems to have found support within the $55,000-$58,000 range, encouraging investors to seize the opportunity to buy the asset at a lower price. Despite the rocky start to the month, attitudes remain optimistic. Even Grayscale’s Head of Research and other crypto analysts are noting a positive shift, with ETF inflows on the rise and long-term holders purchasing more than they have in over a year.

Historically, July has been a favorable month for bitcoin, typically rising by an average of 9% during this period. Investors and analysts are capitalizing on the current lower prices, and the asset appears to be on the verge of recovering from its recent losses.