- Bitcoin ETF inflows remained positive despite the falling price
- Total miner revenues have fallen significantly over the past month
Bitcoin [BTC]The price drop below $60,000 had an extremely negative impact on sentiment around the world’s largest cryptocurrency. And yet, recent data seems to indicate that Wall Street may remain optimistic about the future of the king coin.
A thumbs up from Wall Street
At the time of writing, the latest figures showed cumulative net inflows of $15.50 billion since launch, with daily inflows averaging around $79 million. This was the sixth straight day of positive net flows for these ETFs, indicating continued bullish sentiment among investors.
On the contrary, the Grayscale Bitcoin Trust ETF (GBTC) recorded a completely different trend. On July 11, there were daily net outflows of $38 million, contributing to total net outflows of $18.7 billion.
Shifting focus to Asia, the emerging HK Spot Bitcoin ETF market is also gaining popularity. Since its inception, it has amassed a total net worth of $251.4 million. As of July 11, this ETF recorded daily net inflows of 22 Bitcoin, equivalent to approximately $1 million – a sign of growing investor interest in Bitcoin exposure in the region.
Significant inflows into ETFs can provide price support for Bitcoin, especially during recent market corrections. ETFs exert buying pressure and can potentially cushion significant price declines.
Source:
While Wall Street investors are showing interest in BTC, the same cannot be said about crypto investors. AMBCrypto’s analysis of Santiment’s data found that interest in BTC from both whales and private individuals has declined recently. Accumulation across multiple cohorts has also decreased in recent days.
Despite the support given to BTC by ETF inflows, the decline in whale and retail interest could put additional selling pressure on Bitcoin.
Source: Santiment
Miner income is declining
Another factor that could seriously impact the condition of BTC and add additional selling pressure on the coin is the condition of the miners.
Over the past month, revenue generated by Bitcoin miners has dropped significantly. This could force miners to sell additional BTC to remain profitable, increasing selling pressure on the cryptocurrency.
Source: Blockchain
Finally with the German government done unloading due to the seized BTC positions, selling pressure on BTC could increase in the coming days. This can understandably contribute to a rise in negative sentiment across the board.
Read Bitcoin’s [BTC] Price forecast 2024-25
