Bitcoin Spot ETFs See Highest Inflows in a Month After Drop Below $60,000

Despite Bitcoin’s 20% drop over the past month, long-term holders continue to buy the dip.

According to CryptoQuant, long-term bitcoin holders have been accumulating the digital asset at rates not seen since April 2023. The price of a single bitcoin fell to the mid-$50,000s in early July, where it has since stabilized due to the high volume of liquidity being injected into it.

Bitcoin spot ETFs have also seen a surge in inflows, reaching levels not seen since early June, when bitcoin was worth around $70,000. Over the past three days, more than $600 million has been gobbled up by ETF providers. The largest provider, Blackrock, accounted for more than $200 million of that figure.

Bitcoin’s plunge was likely driven by selling pressure from the now-defunct Mt. Gox exchange, which began reimbursing investors affected by the hack that lost nearly a million bitcoins a decade ago, and by the German government’s moves to dispose of a stash acquired from criminals. The country still holds about $1 billion in bitcoin after selling billions of dollars worth of the cryptocurrency in early July.

Bitcoin seems to have found support in the $55,000-$58,000 range, and investors are taking advantage of this to buy the asset at a low price. Attitudes are positive despite the rough start to the month. Crypto analysts, including Grayscale’s research director, are beginning to see the wind turningInflows into ETFs are increasing and long-term holders are buying more than they have in more than a year.

Historically, July has been a positive month for Bitcoin, with an average gain of 9% during that period. Investors and analysts are happily taking advantage of the lower prices right now, and the asset could be on the verge of recovering its recent losses.

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