Bitcoin Flirts with $70K as Upward Streak Draws On

• Bitcoin has recently shifted direction toward new performance levels.
• Crypto investment funds are experiencing an uptick.
• The launch of Ethereum ETFs is yielding mixed sentiment for Ethereum.

The past month in the crypto market was characterized by intense volatility, with significant price crashes and instability recorded among several assets. Bitcoin suffered a major decline during this period, falling below key support levels.

However, the past weeks have seen a notable uptick in Bitcoin’s price, begging the question of what drives the recovery.

BTC Price Soars with Million-Dollar Inflows

The ongoing positive turn for crypto investment products has led to another round of substantial inflows, totaling $215 million last week.  According to a Monday, July 29 CoinShares report , Bitcoin took the crown with a healthy $519 million fund inflows. 

The multi-million dollar influx of funds built on BTC’s $1.27 billion inflow from the past week , marking the continuation of a weeks-long streak for the world’s largest crypto asset and bringing its month—and year-to-date inflows to US$3.6 billion and $19 billion, respectively.

Bitcoin’s surge in inflow coincides with an ongoing pump in price, which has seen the token surge approximately 10% from the past week’s low point of $63,000 to a current trading price of over $69,000. CoinShares argues that the uptick is likely driven by the frequent mention of BTC among the US presidential election candidates, many of whom have endorsed the crypto king as a potential strategic reserve asset.

Bitcoin’s strong performance stands out, particularly against the varying levels of underperformance among other assets, including Ethereum.

Ethereum’s Performance Rollercoaster

Last week, mixed performance among issuers of the newly-launched Ethereum exchange traded funds (ETF) resulted in a whopping $285 million funds exit for ETH.

The outflow was largely driven by significant withdrawals from Grayscale’s newly converted Ethereum Trust ETF (ETHE), which has seen nearly $1.15 billion in outflows since its launch on Tuesday. CoinShares noted that these withdrawals overshadowed the positive impact of the ETF inflows, which topped $2.2 billion in inflows.

The volatility also affected Ethereum’s price, resulting in a slight dip over the week. However, Ethereum is trading at $3,372 at press time, with a 3.3% increase in the last 24 hours, indicating some efforts toward recovery.

On the Flipside

• Other crypto assets, including Cardano (ADA) , Ripple (XRP) , and Solana (SOL) , also struggled to perform well. SOL saw $2.7 million in outflows, while ADA and XRP recorded gains of less than $1.5 million each.
• At press time, BTC is trading at $69,422.
• BTC’s current trading price is 5.7% away from reclaiming its all-time value of $73,000.

Why This Matters

The shifting market sentiment, underscored by substantial inflows into Bitcoin, signals renewed investor confidence. If this momentum continues, it could drive Bitcoin to new price highs and positively influence the broader market.

Read more about Ethereum’s performance in recent weeks and the impacts of the ETFs:
ETH Faces Headwinds as OI Levels Rise with Ethereum ETFs Debut

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Mt. Gox Creditors See More Payouts as Bitstamp Distributes BTC