ETFs
Bitcoin Spot ETFs Provide Relief to Bulls in Fragile Crypto Market
Bitcoin began trading early Saturday at around $56.5k, after dropping from $53.7k on Friday, amid a tumultuous week. Traders are concerned about bitcoin transfers and Mt. Gox refunds by German authorities. Currently, 75% of Bitcoin wallet addresses are profitable, according to data from IntoTheBlock.
If traders continue to pocket profits, there could be additional pressure to sell Bitcoin. Following the recent US Independence Day on July 6, there was a significant pullback in the Bitcoin spot market AND F As Bitcoin’s price has fallen below $54,000 in the coming weeks, traders expect prices to drop as low as $50,000, a level not seen since mid-February, as billions of dollars in selling could add pressure to the largest crypto asset by market cap.
53,680 traders were liquidated during the day, for a total liquidation value of $190.01 million. The largest single liquidation order, worth $11.4 million, was placed on OKX For BitcoinUSDT and TO EXCHANGE.
Data from Coinmarketcap revealed that the price of Bitcoin has fallen by more than 10% in the past seven days. On Thursday, it fell below a crucial technical signal, wiping out all the gains made since late February. The sale of bitcoins confiscated by the U.S. and German governments, as well as “preemptive selling” when the estate of now-defunct Japanese exchange Mt. Gox began repaying investors last month, were the main causes of the market crash.
Bulls got some relief when data from Farside showed that this was the largest net inflow they had seen in a month, with a staggering $143.1 million pumped into the Bitcoin market.
With a staggering $117 million inflow, the Fidelity Bitcoin ETF led the pack, demonstrating significant investor confidence in the fund.
(BITB) totaled $30.2 million, while inflows into the ARKB and HODL ETFs were $11.3 million and $12.8 million, respectively. In contrast, the Grayscale Bitcoin Trust (GBTC) saw a net outflow of $28.6 million, in stark contrast to the overall upward trend in other spot Bitcoin ETFs.
Based on fundamentals, the Federal Reserve’s potential rate cut in September could lead to another attempt at a bitcoin rally.