Spot Bitcoin ETFs See $438M Inflows Amid Dip Buying Spree

Spot Bitcoin ETFs See $438M Inflows Amid Dip Buying Spree

Investors Capitalize on Bitcoin Price Dip

Investors are taking advantage of the recent dip in Bitcoin prices by pouring funds into Bitcoin exchange-traded funds (ETFs). Over the past two trading sessions, US Bitcoin ETFs have seen a net inflow of $438 million, according to Bloomberg data. This surge in investments occurs as Bitcoin has experienced a roughly 20% decline since early June, with market participants viewing this price dip as a buying opportunity.

“So many investors still don’t own Bitcoin, and that underpins the long-term bull case,” wrote Charlie Morris, chief investment officer at ByteTree, in a note. “This supply storm will soon pass.”

Investors Seize Buying Opportunity Amid Market Pressure

Despite selling pressure from various sources, including repayments related to Mt. Gox and the German government liquidating Bitcoin on exchanges, analysts believe investors see this as an attractive entry point. CoinShares reported total inflows of $441 million into digital asset investment products for the week. However, trading volumes in exchange-traded products remained relatively low at $7.9 billion, consistent with typical summer patterns. Historically, July has been a bullish month for the crypto market, with a median return of 9%, and many traders expect this trend to continue.

Data from SoSoValue shows that the cumulative net inflow for Bitcoin has reached $15 billion, with a daily net inflow of $294 million. Total net assets across Bitcoin ETFs currently stand at $49.32 billion, while Bitcoin’s price at the time of reporting is $55,844.2. These figures highlight sustained institutional interest in Bitcoin through regulated ETF products despite recent price volatility and selling pressure. The willingness of investors to buy during price dips can potentially support Bitcoin’s value amid ongoing market challenges.

German Government Reclaims $200M from Exchanges

In positive news boosting market sentiment, a German government entity recently recovered over $200 million worth of Bitcoin from various exchanges. The return of these assets has provided a much-needed confidence boost, with Bitcoin trading just above $57,300 during Asian morning hours, reflecting a 3.5% increase in the past 24 hours. Other major cryptocurrencies, including Solana (SOL), Ether (ETH), and Dogecoin (DOGE), also experienced notable gains.

Bitcoin faced a brief drop to as low as $55,000 on Monday, triggered by a large transaction involving the German Federal Criminal Police Office (BKA). However, it was later revealed that the BKA had received over $200 million back from exchanges, including Kraken, Coinbase, and Bitstamp, within the past 12 hours. Fortunately, the assets did not hit the market, reassuring traders.

Meanwhile, Bitcoin miners are facing a critical phase known as “capitulation” as their profits diminish amid the recent sell-off in the Bitcoin market. Miner capitulation occurs when miners reduce their operations or sell a portion of their mined Bitcoin and reserves to sustain their operations, earn yield, or hedge their Bitcoin exposure.

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