Bitcoin ETFs and Crypto Whales Fuel Bullish Sentiment
Bitcoin exchange-traded funds (ETFs) have been attracting significant investor interest, accumulating over $1 billion in BTC in the past three trading days. This influx of funds coincides with Bitcoin’s price reaching $66,000, despite ongoing market uncertainties.
Institutional and Retail Investors Fuel Growth
The strong participation of institutional and retail investors in Bitcoin ETFs signals a bullish sentiment in the market. Spot Bitcoin ETFs experienced substantial inflows on Tuesday, receiving over $422.5 million, the month’s peak. BlackRock’s iShares Bitcoin Trust (IBIT) led these inflows with $260.2 million. Meanwhile, Fidelity’s Wise Origin Bitcoin Fund (FBTC) saw about $61.1 million in inflows. Impressively, there were no outflows from Bitcoin ETFs during the past three trading days.
Crypto Whales Accumulate BTC
Crypto whales have also been active, accumulating significant amounts of BTC. Data from CryptoQuant showed that Bitcoin accumulation addresses received approximately 10,800 BTC, roughly $656.64 million, on July 15th.
Experts Downplay Mt. Gox Impact
Amidst these developments, concerns about Mt. Gox have resurfaced. The defunct exchange recently moved 91,755 BTC (~$5.8 billion) to new addresses, stirring fears among investors. Shortly after, Kraken announced that it would distribute Bitcoin and Bitcoin Cash (BCH) to those affected by the Mt. Gox collapse.
However, experts like Ki Young Ju, CEO of CryptoQuant, believe the market has overestimated the potential turmoil from Mt. Gox repayments. He argues that the impact on Bitcoin’s selling pressure might be less than expected, considering the significant capital gains taxes involved for creditors.
Galaxy’s head of research, Alex Thorn, also agrees, suggesting that payout conditions might encourage creditors to hold onto their assets. He estimates that even if 10% of the 65,000 BTC allocated to individual creditors is sold, only about 6,500 BTC would enter the market – much less than market fears had anticipated.
Overall, the recent influx of funds into Bitcoin ETFs and the continued accumulation by crypto whales indicate strong bullish sentiment in the market. While concerns about Mt. Gox remain, experts believe that the potential impact on Bitcoin’s price is manageable.
