Markets
Bitcoin Recovers $57K After $300M ETF Inflows
Bitcoin has found some stability above $57,000 after Monday’s decline to $55,000, as a German government entity received back assets worth more than $200 million from various exchanges late in the day in the United States, helping to revive sentiment. BTC traded around $57,400 in European morning trading, up 1% over the past 24 hours, after falling to $55,000 on Monday after a wallet address belonging to the German Federal Criminal Police Office (BKA) sent over $900 million to multiple addresses, spooking traders. Over the past 12 hours, the entity has received refunds from Kraken, Coinbase, and Bitstamp, Arkham data shows, indicating that while the assets were sent to those exchanges, they ultimately did not make it to market.
Registered Bitcoin Spot ETFs nearly $300 million in net inflows on Monday, the most since early Junewhen the cryptocurrency was trading at over $70,000. BlackRock’s IBIT led the buying activity with nearly $180 million in net inflows, followed by Fidelity’s FBTC. Grayscale’s GBTC, infamous for its outflows, saw over $25 million in purchases. Some investors may see the decline in bitcoin’s price as a buying opportunity, investment firm CoinShares said in a report on Monday. Traders are largely expecting July to be a generally bullish month for the cryptocurrency market, as it has seen an average return of 9% historically, with that trend set to continue.
Data monitored 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 result in a proportional decrease in the network’s hashing power. A drop can benefit smaller miners and mean profits for farms that have been 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 hovered between $65,000 and $70,000.