Blockchain
Bitcoin (BTC) Price Drop Spurs Spot ETF Buying
Back on their screens after the July 4th break, US traders were faced with a historic crash in bitcoin (BTC) which has seen its price fall by more than 10% from its pre-holiday level. Based on ETF data, they decided to increase supply.
Leading the way was Fidelity’s Wise Origin Bitcoin Fund (FBTC), which brought in $117.4 million in net new money. Other funds with net inflows included the Bitwise Bitcoin ETF (BITB), the ARK/21 Shares Bitcoin ETF (ARKB), and the VanEck Bitcoin Trust (HODL). As usual, the high-fee Grayscale Bitcoin Trust (GBTC) continued to lose assets.
In terms of price action, bitcoin has seen a very modest rebound since plunging from nearly $61,000 on Wednesday to below $54,000 on Friday morning, before easing back to $56,800. It is down 6% from last week’s levels and about 23% from its all-time high above $73,500 set in mid-March.
The blame for this latest price drop has been placed on concerns over a massive surge in supply as trustees of the defunct Mt. Gox exchange he started the return of 140,000 bitcoins to former customers and apparently to the German government moved to sell at least some of the thousands of bitcoins it contains.