- Bitcoin exchange-traded products have been on a bullish trend for days.
- Bitcoin has been on a price rollercoaster in recent weeks.
- All eyes are on key support levels for Bitcoin.
The crypto market has recently been marked with mixed sentiments, characterized by shifting investor behavior across the industry. Last week, the broader market was subject to significant downward pressure, resulting in major outflows for exchange-traded products, including Bitcoin ETFs.
However, the beginning of this week brought a turnaround for these investment products, now recording a positive influx of funds.
Bitcoin ETFs Hold Gains
Continuing the positive streak initiated earlier this week, Bitcoin ETFs have pulled another multi-million dollar inflow. According to data from Farside Investors on Friday, July 12, 2024, BlackRock’s IBIT led the trend with the highest inflow of $72.1 million.
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Fidelity’s FBTC followed closely with a total of $32.7 million, making both issuers the only ones to record double-digit investments. BITB by Bitwise and ARKB by Ark 21Shares also saw gains, albeit more modestly, at $7.5 million and $5.3 million, respectively.
The five-day-long inflows mark a major U-turn for Bitcoin ETFs, following the significant underperformance in previous weeks that saw the products shed millions. Additionally, it suggests sustained investor interest, dispelling earlier concerns that the renewed investor sentiment may be short-lived.
However, not all issuers have joined in this positive turn. Six others failed to attract any funds, and Grayscale’s GBTC took a different direction, experiencing $37.7 million in outflows. The performance of Bitcoin ETFs aligns with the improvements recorded in BTC’s price.
Is Bitcoin Headed for Recovery?
Although minimal, Bitcoin (BTC) has managed to gain some ground over the past few days, recovering from its recent price lows. Trading at $58,219 at press time, this price marks a 6.95% increase from its low point of $54,424 this week.
Despite the recovery, Bitcoin still has a long way to go. Its current value remains significantly below its $60,000 support level and is down 21.08% from its all-time high of $73,780.
Recent analysis has highlighted key support levels, establishing $60,000 as a crucial point for Bitcoin to reclaim in order to restore bullish momentum. However, if the crypto king falls below this range and dips past $50,000, it could trigger significant selling pressure across the industry.
On the Flipside
- A continued surge in buying pressure could propel BTC to new price highs and solidify the industry’s bullish outlook.
- The outflows recorded for Grayscale suggest that some investors still exercised caution.
- Bitcoin is facing increasing sell pressure from ongoing the German government asset shuffle.
Why This Matters
If sustained, the renewed inflows in Bitcoin ETFs could propel Bitcoin’s price to new highs, potentially marking a recovery from the long-trending downward momentum and triggering a positive trend throughout the entire cryptocurrency market.
To better understand Bitcoin ETFs, read this article:
Bitcoin Bulls Fight Back as $654M Rush into Bitcoin ETFs
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