Markets
Bitcoin Recovers $57,000 on $300 Million in ETF Inflows
Bitcoin has found stability above $57,000 after Monday’s drop up to $55,000, as a German government entity recovered more than $200 million worth of the asset from various exchanges late in the U.S., helping to revive sentiment. BTC was trading around $57,400 during the European morning, up 1% over the past 24 hours, after falling to $55,000 on Monday after a wallet address belonging to Germany’s Federal Criminal Police Office (BKA) sent over $900 million to various other addresses, spooking traders. Over the past 12 hours, the entity received refunds from Kraken, Coinbase, and Bitstamp, Arkham data shows, indicating that while the assets were sent to these exchanges, they ultimately did not reach the market.
Bitcoin Cash ETFs Are Registered Nearly $300 million in net inflows on Monday, the highest 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 — notorious for its outflows — saw more than $25 million in purchases. Some investors may view the drop in bitcoin’s price as a buying opportunity, investment firm CoinShares said in a report Monday. Traders largely expect July to be a generally bullish month for the cryptocurrency market, as it has historically returned an average of 9%, and the trend is likely 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 hashing power. A drop can favor smaller miners and generate 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 over two weeks as prices hovered between $65,000 and $70,000.