Bitcoin Price Surges to $57K After $300M Inflows from ETFs in Americas
Bitcoin prices stabilized above $57,000 after a recent dip to $55,000 following a significant event where a German government entity received back over $200 million worth of the cryptocurrency from various exchanges. This development helped improve market sentiment, with BTC trading around $57,400 during the European morning, marking a 1% increase in the past 24 hours. The drop to $55,000 occurred after a wallet address linked to the German Federal Criminal Police Office (BKA) transferred over $900 million to different addresses, causing concern among traders. However, the entity received refunds from exchanges like Kraken, Coinbase, and Bitstamp, as reported by Arkham data, suggesting that the assets did not enter the market despite being sent to these platforms.
On the ETF front, spot bitcoin ETFs saw nearly $300 million in net inflows on Monday, the highest since early June when the cryptocurrency was trading above $70,000. Notably, BlackRock’s IBIT led the buying activity with close to $180 million in net inflows, followed by Fidelity’s FBTC. Even Grayscale’s GBTC, known for its outflows, recorded over $25 million in purchases. Analysts suggest that some investors view the price drop in bitcoin as a buying opportunity, with investment firm CoinShares indicating positive market expectations for July given historical trends of a 9% medium return for the month.
Bitcoin’s mining difficulty experienced a notable decline from 83.6 TH/s to 79.50 TH/s on June 5, reaching a level last observed in March, a month before the halving event. This significant drop in difficulty is among the largest since the collapse of crypto exchange FTX, which led to a more than 10% decline in bitcoin prices within a week. Decreases in mining difficulty can benefit smaller miners and potentially bring profits to farms that had previously ceased operations due to cost challenges. In June, miners were a key source of selling pressure on bitcoin, with over $1 billion worth of BTC sold over a two-week period while prices ranged between $65,000 and $70,000.
The daily net inflow of BTC into wallets associated with centralized exchanges is depicted in a chart, showing a recent net outflow of over 68,000 BTC on Friday, the highest since late 2022. Outflows are often seen as indicative of an investor preference for a long-term holding strategy. This data is sourced from CryptoQuant, providing insights into the market dynamics surrounding bitcoin.
