Bitcoin Price Consolidates as Spot BTC ETFs Cash Inflows Registered $21M on Wednesday

As an experienced analyst, I have closely observed the cryptocurrency market for several years, and I believe that the current market situation calls for caution but also presents opportunities for growth. The recent stabilization of the total cryptocurrency market cap at around $2.38 trillion, with Bitcoin (BTC) hovering around $61K, is a welcome development after a choppy few weeks. However, it’s essential to note that Bitcoin ended June in the red, and bulls must defend the support level around $60K to avoid further capitulation towards $48K.

As a crypto investor, I’ve observed that the total value of the cryptocurrency market remained relatively steady at around $2.38 trillion on Thursday. Meanwhile, Bitcoin (BTC), the leading digital asset, hovered near the $61,000 mark during the previous 24 hours. Unfortunately, after experiencing a decline of over 12 percent in the past three weeks, Bitcoin is poised to close out June with negative returns.

Based on historical trends over the past five years, Bitcoin’s price has typically bounced back by more than double digits in July following a volatile and uncertain market condition in June.

If Bitcoin investors want to prevent a deeper sell-off, they need to hold the line at the $60,000 mark as a crucial support.

The increased shift of crypto investments toward Ethereum due to heightened anticipation of Ether ETF approval in the US has put pressure on Bitcoin supporters. Additionally, Bitcoin’s dominance has been showing signs of a weekly bearish reversal, as indicated by a divergence between the price trend and the RSI.

Spot Bitcoin ETFs Signals Imminent Recovery

Over the past three days, there’s been a shift in the trend for US-listed Bitcoin spot ETFs, which have seen substantial outflows totaling over $2 weeks. However, recent market data indicates that these ETFs experienced approximately $21.52 million in cash inflows on Wednesday.

On Wednesday, Grayscale Investments’ GBTC fund experienced an intake of approximately $4 million in cash. The largest cash injection into U.S. Bitcoin spot ETFs was recorded by Fidelity Investments’ FBIT, totaling around $19 million. VanEck’s HODL reported a cash inflow of roughly $3 million, resulting in an aggregate intake of approximately $521 million.

During the same day, the Ark Investment Management’s ARK Bitcoin ETF (ARKB) and the Ark of the Covenant (Ark) reported approximately $5 million in net outflow. In contrast, other Bitcoin spot ETFs, including BlackRock’s iShares Bitcoin Trust (IBIT), did not experience any cash inflow or outflow on Wednesday.

Market Picture

As a researcher studying the cryptocurrency market, I’ve noticed that over two months have passed since the latest Bitcoin halving event. During this time, the usage and acceptance of crypto assets and Web3 protocols have been gradually expanding worldwide. According to data from IntoTheBlock, there are now over one million individuals holding entire Bitcoins in their wallets. This figure comes amidst a nearly 18 percent reduction in the number of Bitcoin holders who are currently earning a profit.

Despite this, the average monthly number of Bitcoin transactions valued between $1,000 and $10,000 has dropped by thirty percent from its previous high of $63,000.

Based on current market conditions, it seems that sellers hold the upper hand, as there remain approximately 62,000 sell orders waiting to be filled.

— Bitcoinsensus (@Bitcoinsensus) June 27, 2024

Buyers have been significantly impacted by the persistent selling of Bitcoin by the German and US governments over the past week. The German administration disposed of over 5,000 Bitcoins, valued at approximately $306 million.

According to a report from Arkham Intelligence’s on-chain analysis, approximately 3,940 Bitcoins were transferred from the US government to Coinbase Prime Wallet on a Wednesday.

As a crypto investor, I’m excited about the upcoming listing of spot Ethereum ETFs in the US, which is expected next month. This development will undoubtedly boost the bullish sentiment in the crypto market. Moreover, I believe that the liquidity in the crypto space will gradually increase as we anticipate significant cash inflows towards the altcoin industry following this event.

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2024-06-27 13:32