Bitcoin(BTC) exchange-traded funds (ETFs) in the United States have seen a surge in investment over the past three days, with over $654 million flowing into spot Bitcoin ETFs. This comes despite a recent price decline for Bitcoin, which is currently trading below $60,000.
The influx began on July 5th and continued through July 9th, with BlackRock’s iShares Bitcoin(BTC) Trust and Fidelity’s Wise Origin Bitcoin Fund leading the charge. Analysts believe this strong inflow could potentially drive the price of Bitcoin back up, similar to what happened in the months leading up to its all-time high in March.
However, this positive trend is being countered by a significant sell-off from Germany’s Federal Criminal Police (BKA). Since July 5th, the BKA has liquidated over $850 million worth of Bitcoin, which was seized in mid-January from a movie piracy website. Onchain data suggests the BKA began selling in June and accelerated its efforts in early July.
While the ETF inflows are substantial, they are currently not enough to offset the BKA’s large-scale selling. The net effect remains negative for Bitcoin’s price, which has fallen nearly 15% in the past month.
Also Read: Bitcoin Price Swings 3% After German Government’s $1 Billion Sell-Off And Surprise Buy-Back
Key Takeaways:
- Spot Bitcoin ETFs in the US have seen significant inflows over the past three days.
- Bitcoin’s price remains below $60,000 despite the ETF buying.
- Germany’s BKA is selling off a large amount of seized Bitcoin, putting downward pressure on the price.
It remains to be seen whether the positive sentiment from ETF investors will outweigh the selling pressure from the BKA. The coming days and weeks will be crucial in determining the short-term direction of Bitcoin’s price.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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