ETFs are Buying Three Times More Bitcoin Than miners Produce — Traders Expect Continued Growth
The main question today is whether Bitcoin will reach its all-time high of $74,000 soon. Traders are confident that the bottom of the current correction has been passed.
Technical Analysis
According to Cryptovizor, Bitcoin rose to $67,984, rebounding over 20% from its May low.
Trader Crypto Damus noted this as the first bullish weekly engulfing since October 2023. Michaël van de Poppe confirmed the trend reversal and predicted altcoin growth in the coming months:
He believes that altcoins completing their correction will show "vertical movement" in Q3/Q4.
Macroeconomics
Analyst Tedtalksmacro thinks the crypto market's growth isn't over, noting that the U.S. M2 money supply is at its lowest since the 1990s but has growth potential with liquidity easing.
Bitcoin ETFs
Investors are showing renewed interest in spot Bitcoin ETFs. Last week, fund inflows amounted to nearly $1 billion.
Thomas Farer mentioned that Bitcoin ETFs acquired 21,700 BTC ($1.5 billion) over the month, which is three times more than new bitcoins mined by miners.
Bitcoin on Exchanges
The volume of bitcoins on exchanges is at its lowest since 2017, amounting to 1,918,417 BTC. At the peak of the bull market in 2021, there were about 2.7 million BTC on exchanges; now, it's around 2 million BTC, with prices near historical highs.
CryptoQuant analysts note that bearish sentiment on Bitcoin is becoming increasingly difficult to maintain.
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