Bitcoin BTC Price Back Above $57k: ETFs Buy The Dip With $300 Million Inflow

TLDR

Bitcoin ETFs saw nearly $300 million in net inflows on July 8, the highest since early June.
BlackRock’s IBIT led with about $180-190 million in inflows.
This buying activity comes amid selling pressure from Mt. Gox repayments and German government BTC sales.
Bitcoin’s price jumped 7.4% in 12 hours, reaching around $57,000.
Whale activity is increasing around the $57,100 price level, indicating potential accumulation or selling.

The Bitcoin market experienced significant activity on July 8, with U.S.-listed spot Bitcoin exchange-traded funds (ETFs) recording nearly $300 million in net inflows. This marks the highest buying activity for these funds since early June when Bitcoin was trading above $70,000.

Leading the pack was BlackRock’s iShares Bitcoin Trust ETF (IBIT), which saw inflows of about $180-190 million. Fidelity’s Wise Origin Bitcoin Fund followed with $61.5 million in new investments. Even the Grayscale Bitcoin Trust, known for its recent outflows, recorded over $25 million in purchases.

This surge in ETF inflows comes at a time when Bitcoin faces selling pressure from various sources. The defunct crypto exchange Mt. Gox is beginning to repay creditors who lost funds in a 2014 hack, potentially releasing $8.5 billion worth of Bitcoin into the market. Additionally, a German government entity has been moving hundreds of millions of dollars worth of Bitcoin to exchanges over the past month.

Despite these selling pressures, Bitcoin’s price jumped 7.4% in just 12 hours, reaching around $57,000. This price movement has caught the attention of both retail and institutional investors.

Whale activity, referring to large Bitcoin holders, has increased around the $57,100 price level. This could indicate either accumulation or potential selling by these big players. The concentration of whale activity at this price point suggests it could be a critical level for the next market move.

The current market dynamics show an interesting balance between different types of investors. The whale-to-retail ratio sits at 49.15, meaning retail traders slightly outnumber whale investors at present. This near-even split could lead to a tug-of-war between these two groups, potentially causing significant market movements.

Adding to the mix, the long/short ratio in the Bitcoin market is leaning bullish. This means more investors are betting on further price increases, despite some market imbalances. The positive sentiment correlates with the recent price jump and could fuel further upward momentum if more buyers enter the market.

The recent ETF inflows suggest that some investors view the current market conditions as a buying opportunity.

Investment firm CoinShares noted in a recent report that the selling pressure from Mt. Gox and the German government might be seen as a chance to buy Bitcoin at a lower price.

Looking ahead, July has historically been a bullish month for the crypto market, with a medium return of 9%. Many traders expect this trend to continue.

For now, all eyes are on the $57,000 price level. If Bitcoin can maintain its position above this point or break higher, it could signal another leg up in the market.