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Bitcoin at $80,000 in September thanks to ETFs?
If we analyze the latest Bitcoin ETF data, it seems that the coming weeks are looking good for bitcoin. After a gloomy June, especially following the sale of 50,000 BTC by Germany, can we expect a new bull run to reach $80,000 by the fall?
Bitcoin ETFs on the rise in July
THE Bitcoin ETF recorded positive net inflows every day in July, except once on July 3, when minor outflows of 200 BTC were recorded.
This trend indicates a renewed dynamism in the market after a mediocre performance in June. More recently, July 16 saw a substantial influx of 6,500 BTC, up from the previous day’s strong performance, which saw an inflow of 4,700 BTC.
The flows on these two days alone highlight growing interest and confidence in Bitcoin ETFs. The data clearly shows strong purchasing dynamics.
Regular contributions throughout July indicate Investor confidence remained strong despite a major Bitcoin selloff by the German government.
Towards a new Bitcoin bull run?
This consistency is a positive indicator of market sentiment and suggests that The market is recovering from its poor performance in June.
The continued influx of money into Bitcoin ETFs could have several causes:
- June’s weak performance appears to be an anomaly, with July’s strong inflows reflecting a recovery and a renewed interest in buying BTC.
- Large entries are often a sign of a institutional participationsuggesting that Larger, more strategic investors are increasing their exposure to bitcoin through ETFs.
Incoming flows contribute to greater market liquidity and stability, which can attract more investors and support the growth of the bitcoin market.
Blackrock very bullish on bitcoin
On Monday, July 15, Blackrock CEO Larry Fink appeared on CNBC to say he now has a favorable view of bitcoin, changing his previous opinion that it was not a suitable investment instrument.
IBITBlackrock’s Bitcoin ETF has seen the largest inflows of any ETF, holding more than 320,000 BTC.
Recent BTC drop caused by Germany
Germany has started selling 50,000 bitcoins confiscated in illegal music sharing service shutdown
This decision marks one of the largest digital currency sales seized, sparking intrigue and debate within the global bitcoin community.
The bitcoins were seized in a illegal file sharing operation The operation, dubbed movie2k, facilitated access to pirated films and TV shows. The German authorities’ success in the operation was hailed as a victory against digital piracy and money laundering.
The seizure, which involved numerous law enforcement agencies including the Federal Criminal Police Office and the FBIis remarkable for its magnitude.
A meaningful symbol
The sale of these confiscated bitcoins is not only a bureaucratic measure; it is also a statement on the role of Bitcoin in the modern financial landscape.
By choosing to sell bitcoins rather than hold them, German authorities recognize that Bitcoin is a valuable asset, comparable to gold or foreign currency reserves.
This decision could put a precedent for other governments manage seized digital assets and could influence how nations approach crypto.
With its fixed supply of 21 million tokens, Bitcoin stands in stark contrast to fiat currencies, which central banks can print at will.
This fixed offer is a key feature that appeals to investors looking for protection against inflation and currency devaluation, particularly in the current economic climate where fiat currencies are facing unprecedented pressures.
The impact of bitcoin sales on the market
Selling 50,000 bitcoins on the market is not without consequences.
Such a large sale seems to have had a negative impact in June on the price of bitcoin.
However, historical precedent suggests that the market can absorb significant sales. without long-term negative effects.
The Future of Bitcoin
Germany’s decision also raises important questions about the role of cryptos in the state economy. As more assets move to digital formats, the methods and policies for managing these assets must evolve.
For bitcoin enthusiasts and digital currency advocates, Germany’s decision validates bitcoin’s place in the global financial system.
This suggests that bitcoin is not just a speculative asset. but a legitimate store of value and a medium of exchange with which governments must deal.
The successful absorption of such a volume of bitcoins into the market also demonstrates the robustness of bitcoin’s liquidity and its ability to handle large transactions without long-term negative effects.
It is becoming increasingly clear that bitcoin’s role in the global financial landscape is changing, with governments now participating in market dynamics and institutions turning to ETFs. This development marks a significant step in the integration of bitcoin into traditional economic frameworks, heralding a new era of financial innovation.
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Satosh
Every day, I try to enrich my knowledge about this revolution which will allow humanity to advance in its conquest of freedom.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be considered investment advice. Do your own research before making any investment decision.