Bitcoin
Bitcoin Recovers $57K After $300M in ETF Inflows
Bitcoin found some stability above $57,000 after Monday’s drop to $55,000 as a German government entity received more than $200 million in assets from various exchanges late in the U.S., helping to revive sentiment. BTC was trading around $57,400 during European morning trading, up 1% over the past 24 hours, having fallen to $55,000 on Monday after a wallet address belonging to Germany’s Federal Criminal Police Office (BKA) sent more than $900 million to several other addresses, spooking traders. In the past 12 hours, the entity has received refunds from Kraken, Coinbase and Bitstamp, Arkham’s data shows, indicating that while the assets were sent to these exchanges, they ultimately did not reach the market.
Registered Bitcoin Spot ETFs nearly $300 million in net inflows on Monday, the most since early Junewhen the cryptocurrency traded above $70,000. BlackRock’s IBIT led the buying activity with nearly $180 million in net inflows, followed by Fidelity’s FBTC. Grayscale’s GBTC — notorious for its outflows — saw more than $25 million in buying. Some investors may be viewing the dip in bitcoin’s price as a buying opportunity, investment firm CoinShares said in a report Monday. Traders expect July to be a generally bullish month for the cryptocurrency market, as it has seen an average return of 9% historically, with the trend expected to continue.
Data tracked by Coinwarz shows Bitcoin mining difficulty dropped from 83.6 TH/s to 79.50 TH/s on June 5a level last seen in March, a month before the halving. This is one of the biggest difficulty drops since the collapse of cryptocurrency exchange FTX, which sent bitcoin prices down more than 10% in a week, CryptoQuant noted. Downward adjustments mean a proportional decrease in the network’s hash power. A drop could favor smaller miners and mean profits for farms that were shut down because they couldn’t keep up with costs. Miners were a major source of bitcoin selling pressure in June, with more than $1 billion worth of BTC sold in two weeks as prices ranged between $65,000 and $70,000.