Capital is flowing back into Bitcoin ETFs for two consecutive weeks, leading analysts to believe the crypto market is beginning to build a base.
US spot Bitcoin ETFs have seen net inflows for the second consecutive week, after experiencing outflows for nearly two months. Analysts believe the crypto market is beginning to build a base.
On July 20, 2569 at 12.48:XNUMX p.m., Bloomberg News reported that US-listed Bitcoin spot ETFs have seen net inflows for the second consecutive week. After facing continuous capital outflows for almost two months, this reflects recovering investor confidence and raises hopes that the cryptocurrency market may be forming a price base.
Data indicates that the 13 Spot Bitcoin ETFs saw net inflows of $75.7 million last week, following the previous week's inflows of $197.4 million. This occurred despite early selling pressure of $424.7 million from investors following the renewed military conflict between the US and Iran.
Analysts believe the resurgence of investment flows into Bitcoin ETFs, as well as funds referencing Ether (ETH), the world's second-largest cryptocurrency by market capitalization, may signal a gradual return of investor confidence to the market.
Richard Galvin, CEO of the crypto investment firm DACM. It is said that the return of capital flows into ETFs is likely a signal that the market is bottoming out, as ETFs have become a good indicator of investor confidence in Bitcoin and digital assets in general. After facing continuous capital outflows for 8 weeks, the reversal to inflows for 2 consecutive weeks is therefore considered a positive development.
Bitcoin's price has returned above the 200-week moving average, which is around $63,300 – a level many investors use to distinguish between uptrends and downtrends. This is despite the price fluctuating between $60,000 and $65,000 in recent weeks amidst global economic uncertainty.
In recent Asian trading, Bitcoin temporarily surged above $65,000 despite the US launching a new offensive against Iran. However, analysts warn that this conflict could increase inflationary pressure and likely lead the Federal Reserve (Fed) to maintain a tighter monetary policy.
Damien Loh, Chief Investment Officer of Ericsenz Capital. It was noted that the risk of the Fed raising interest rates further remains a factor preventing institutional investors from fully returning to the market. However, if the US Congress passes the Clarity Act, a law regulating the digital asset market structure, before the end of the August session, it could be a positive factor supporting Bitcoin prices in the coming period.
Although Bitcoin has shown strength against other risky assets, its price has still fallen by about 10% since the beginning of June, after Strategy Inc. revealed that it had sold some Bitcoin for the first time since 2565, marking a shift in the company's stance from its previous policy of continuously accumulating Bitcoin.
Strategy recently revealed on July 6th that it sold an additional $216 million worth of Bitcoin, significantly higher than its previous sale of only $2.5 million. This move comes as the price of Bitcoin has fallen to approximately half of its October peak of $126,000, forcing the company to manage its liquidity to support its dividend payments to shareholders.
refer : bloomberg.com
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