Returning from the July 4 break, U.S. traders faced a dramatic drop in Bitcoin’s price, which fell over 10% from pre-holiday levels. Despite this decline, ETF data indicates a bullish response from investors.
Record Inflows into Bitcoin ETFs
Farside Investors reported that U.S.-based spot Bitcoin ETFs saw net inflows of $143.1 million on Friday, marking the highest level of inflows in at least two weeks. Leading the pack was Fidelity’s Wise Origin Bitcoin Fund (FBTC), which attracted $117.4 million in net new money. Other funds, such as the Bitwise Bitcoin ETF (BITB), the ARK/21 Shares Bitcoin ETF (ARKB), and the VanEck Bitcoin Trust (HODL), also saw net inflows. In contrast, the high-fee Grayscale Bitcoin Trust (GBTC) continued to lose assets.
Bitcoin’s Modest Bounce and Price Volatility
After plummeting from nearly $61,000 on Wednesday to under $54,000 early Friday, Bitcoin has seen a modest recovery, currently trading around $56,800. This represents a 6% decline from week-ago levels and approximately a 23% drop from its all-time high above $73,500 set in mid-March.
Factors Behind the Price Drop
The recent downturn in Bitcoin’s price is attributed to concerns about a potential surge in supply. This is due to the trustees of the defunct exchange Mt. Gox beginning the return of 140,000 Bitcoin to former customers and reports of the German government moving to sell a portion of its Bitcoin holdings.
