Markets
Crypto Markets Rebound as Spot Bitcoin ETFs See Highest Inflows Since June 6
On July 8, Spot Bitcoin ETFs saw their strongest inflow in five weeks.
Cryptocurrency markets continued to post gains on Tuesday morning, with the overall cryptocurrency market cap up 1.7% over the past 24 hours.
Bitcoin (BTC) increased by 2% over the same period to last change hands at $57,200, while Ethereum (ETH) is trading at $3,050 after posting a 2.2% gain. Polkadot (POINT) is trading above $6.10 after a 2.5% daily bounce, while Solana (SOL) recent momentum is slowing to $139.5 after a 1.7% rebound.
Bittensor (TAO), Celestia (TIA), and Sei (SEIac) were the best performers among the top 100 cryptocurrencies, posting daily gains of 14.2%, 13.9%, and 10.8%, respectively. Notcoin (NOT) recorded the heaviest loss with only 3%, followed by Avalanche (AVAILABLE) with 1.9% and Near Protocol (NEAR) with 1.4%.
Modular blockchains and Solana meme tokens were among the strongest market segments, with 24-hour gains of 20.5% and 12%, respectively.
Cryptocurrency’s small recovery comes after digital assets suffered heavy losses at the end of last week. Only three of the 100 largest non-stablecoin sectors have seen gains in the past seven days, with modular blockchains rallying 19%.
Data from CoinGlass shows that 34,142 traders were liquidated, with total losses amounting to $99.7 million.
Investors are “buying the dip”
The cryptocurrency market rebound coincides with the largest daily inflows into spot Bitcoin ETFs in five weeks.
On July 8, Bitcoin ETFs saw a net inflow of $294.8 million, led by BlackRock’s IBIT with $187.2 million. This is the highest daily inflow since June 6, according to data from Farside.
Willy Woo, a well-known cryptocurrency market analyst, said that ETF investors are taking advantage of the opportunity created by the bearish trend late last week to buy stocks on the downside.
“ETFs are buying the dip,” he said. tweeted. “A little early to tell, but it suggests an accumulation pattern. Look for price moving sideways in a compressed band of low volatility as BTC leaves exchanges.”
Stock Market Spikes
U.S. stock futures also edged up modestly on Tuesday. Dow Jones Industrial Average futures rose 56 points, or 0.1%, while S&P 500 and Nasdaq-100 futures rose 0.2% and 0.4%, respectively.
This comes as the US labor market is showing signs of weakness, which could be good news for Bitcoin. A weaker labor market could prompt the Federal Reserve to cut interest rates, injecting a significant amount of liquidity into the market.
Friday’s U.S. employment report showed weaker-than-expected job growth, suggesting the central bank may cut rates to stave off a recession. Bureau of Labor Statistics report indicated that nonfarm payrolls rose by 206,000 jobs in June, mostly due to government hiring.
According to CME FedWatch data, 75% of market participants to expect The Fed will cut rates twice this year.
Federal Reserve Chairman Jerome Powell is expected to testify before Congress on Wednesday to give his semiannual update on monetary policy.
Meanwhile, several key inflation indicators are due to be released later this week, including the June consumer price index and producer price index.