- Bitcoin’s price crashed and recovered slightly since, following significant challenges including Mt Gox payouts and German BTC sales.
- This comes amid renewed optimism as substantial inflows into spot Bitcoin ETFs supported by positive forecasts from industry experts.
The crypto market went through a lot of pain in the past two weeks, with Bitcoin (BTC) and large-cap altcoins suffering double-digit losses every other day.
Several factors have affected Bitcoin’s price and the fragile stability of the broader crypto market. Arguably, one of the biggest triggers that caused the most panic among investors was Mt Gox creditors getting reimbursed after roughly ten years.
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To make matters worse, the German government had disposed of over US$175M (AU$259M) worth of BTC. Following the chaos of the last couple of days, US-based spot Bitcoin exchange-traded funds (ETFs) saw a surge in inflows on Friday, two days after BTC dropped below US$54,000 (AU$79,916).
According to data from SoSo Value, on July 5, spot Bitcoin ETFs saw a total of US$143.1M (AU$211.8M) in daily net inflows.
It should be noted that this new batch of net inflows could reignite the five-day streak of consecutive inflows that spot Bitcoin ETFs saw in late June, although these numbers were more moderate compared to the beginning of that month and throughout May.
From a detailed financial perspective, June was one of the harshest months for Bitcoin, given that spot ETFs recorded nearly US$1B (AU$1.48B) in net outflows.
Fidelity Leads the Pack
Moving on, data from Farside Investors shows the Fidelity Wise Origin Bitcoin Fund (FBTC) led with approximately US$117.4M (AU$173.7M) in net inflows, while the Bitwise Bitcoin ETF (BITB) saw US$30.2M (AU$44.7M) in net inflows. However, the Grayscale Bitcoin Trust (GBTC) experienced a net outflow of US$28.6M (AU$42.3M).
Time to Buy the Dip?
Bitcoin is trading at US$55,347 (AU$81,913) at press time, a painful 20.32% decrease from last month. BTC had previously crashed to a 5-month low of US$53,550 (AU$79,241), but it managed to push back and recover some ground by the end of the week.
The new batch of inflows sparked optimism in the crypto community, with renowned figures claiming several technical indicators pointing to a reversal in BTC’s price.
Hunter Horsley, CEO of Bitwise, stated:
The outlook for Bitcoin has never been stronger. For many who don’t yet have exposure, this week is a chance to buy the dip.
Hunter Horsley Meanwhile, popular trader Jacob Canfield believes Bitcoin is throwing one of the “cleanest bullish setups” he has ever seen.
Source:
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