Bitcoin’s Rebound Persists with $295 Million Deposited in Spot ETFs
Bitcoin has surged past $57,000 following a blend of positive and negative factors impacting the cryptocurrency market. This rebound is significant after Bitcoin dropped to $54,092.80 recently.
A notable trend has been the steady flow of funds into Bitcoin ETFs despite market fluctuations. U.S.-listed spot Bitcoin ETFs saw nearly $300 million in net inflows on July 8, the highest since early June, according to Coinglass data.
Leading the inflow charge was BlackRock’s IBIT with close to $180 million, followed by Fidelity’s FBTC. Even Grayscale’s GBTC, which has been experiencing daily outflows, witnessed over $25 million in purchases. This surge in inflows contrasts with the significant outflows from these funds in the previous month.
The resilience of ETF inflows during price weakness suggests that institutional investors may view the recent selling pressure as a buying opportunity. However, 10x Research warns of potential risks ahead, citing a historical pattern of a “summer lull” for Bitcoin, often followed by a fourth-quarter recovery.
Bitcoin has been consolidating in the $55,000 to $57,000 range recently, with key resistance levels around $60,000 closely monitored by traders. This stability coincides with record highs in U.S. stocks, underlining Bitcoin’s evolving role as both a risk asset and a hedge against traditional market volatility.
Markus Thielen, Head of Research at 10x Research, highlighted the potential impact of an upcoming Ethereum ETF approval by summer’s end. This approval could shift investor focus away from Bitcoin temporarily, potentially leading to increased volatility or a brief price dip for BTC.
In conclusion, Bitcoin’s recent rebound reflects a mix of market dynamics, institutional interest, and upcoming regulatory developments. As the cryptocurrency market continues to evolve, investors are closely monitoring key indicators and trends to navigate the ever-changing landscape.
