After a grueling few weeks of BTC ETFs experiencing declining inflows and massive outflows, they attracted $129.45 million on July 1. That is after these ETFs recorded over $1 billion in outflows within a single week in June. And that happened twice.
Unlike those spells, BTC ETFs observed a five-day consecutive spell of net inflows, with July 1 taking it into the hundreds of millions, marking the highest inflows since June 7. Simultaneously, bitcoin prices rallied to over $63,000, which it struggled to do at the end of June.
Fidelity’s ETF was responsible for the largest chunk of inflows, $65 million worth of bitcoin, followed by Bitwise’s ETF, with 650 bitcoins worth $41 million. ARK 21Shares’ ETF witnessed inflows of 205 bitcoins worth $13 million. ETFs issued by BlackRock and Grayscale saw no net inflows.
July is a historically great month for Bitcoin as its price is associated with rises averaging over 7%. That will help the largest cryptocurrency even out the losses it observed in June.
It saw massive sales, amounting to billions getting liquidated, uncertainty due to events like Mt. Gox returning 140,000 bitcoins to creditors, and macroeconomic factors.
However, July can change Bitcoin’s trajectory despite the selling pressure and the other factors causing FUD. This month’s seasonal cycles may boost the asset’s price.
Seasonality may look random, but it can be a foolproof way to predict what happens in the market unless a black swan event occurs. For instance, profit-taking is observed largely during tax season in April and May, causing asset prices to dip for the following weeks. July often sees a reversal as the market bounces back.
Also, possible ETH ETF launches this month can further push crypto into bullish territory. Issuers were asked to make final changes to their applications, which does not take much time, according to analysts.
Image by Borko Manigoda from Pixabay
