As a seasoned crypto investor with a few years under my belt, I’ve grown accustomed to the rollercoaster ride that comes with investing in digital assets. However, the historic plunge in bitcoin (BTC) following the July 4 break was a wake-up call, to say the least.


Upon resuming work after the July 4 holiday, I, as a researcher of financial markets, was met with an unprecedented drop in bitcoin (BTC) prices, causing its value to plummet by over 10% from its pre-holiday level. Based on data from Bitcoin ETFs, I made the decision to increase my offers.

Based on data from Farside Investors, last Friday witnessed the biggest inflow of approximately $143.1 million into U.S.-listed bitcoin spot ETFs within the past two weeks.

Fidelity’s Wise Origin Bitcoin Fund (FBTC) spearheaded the inflow with a total of $117.4 million in new investments. Likewise, the Bitwise Bitcoin ETF (BITB), ARK/21 Shares Bitcoin ETF (ARKB), and VanEck Bitcoin Trust (HODL) attracted fresh funds as well. In contrast, Grayscale Bitcoin Trust (GBTC) experienced continued outflows due to its higher fees.

In terms of price fluctuations, bitcoin has experienced a slight rebound since dipping from almost $61,000 on Wednesday to below $54,000 early Friday. Its current value is at around $56,800. This represents a decrease of 6% compared to the previous week’s price and approximately 23% lower than its record high of over $73,500 reached in mid-March.

As a researcher studying the cryptocurrency market, I can explain that recent price drops are attributed to two main factors. Firstly, there are concerns over an imminent increase in supply due to Mt. Gox trustees releasing 140,000 bitcoins back to their former customers. Secondly, rumors of the German government selling a portion of its bitcoin holdings have added to market uncertainty and downward pressure on prices.

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2024-07-06 17:33