- Bitcoin spot ETFs received $530.20 million of inflows on Monday.
- The US Government's and Mt. Gox funds movement on Monday may negatively impact Bitcoin's price.
- On-chain data shows that Bitcoin Exchange Depositing Addresses are decreasing, signaling growing confidence among investors.
Bitcoin (BTC) struggles around the $67,000 mark and declines by 1.7% at the time of writing on Tuesday at around $66,350. Bitcoin spot ETFs saw significant inflows of $530.20 million on Monday. However, movements involving the US Government and Mt. Gox potentially exerted downward pressure on Bitcoin's price. Concurrently, on-chain data reveals a decrease in Bitcoin Exchange Depositing Addresses, indicating rising investor confidence in holding their assets.
Daily digest market movers: Bitcoin spot ETF received $530.20 million in inflows on Monday
- According to Coinglass Bitcoin Spot ETF data, inflows of $530.20 million occurred on Monday, the highest since June 5. Monitoring these ETFs' net flow data is crucial for understanding market dynamics and investor sentiment. The combined Bitcoin reserves held by the 11 US spot Bitcoin ETFs stand at $53.16 billion.
Total Bitcoin Spot ETF Net Inflow (USD) chart
- Data from Arkham Intelliengnce shows that Mt. Gox addresses deposited $1 to 4 separate Bitstamp deposit addresses. Bitstamp is 1 of 5 exchanges working with the Mt. Gox Trustee to facilitate creditor repayments. These transfers are likely to represent test transactions. Mt. Gox currently holds $6.08 billion in Bitcoin.
THIS MORNING: MT GOX MOVING FUNDS
— Arkham (@ArkhamIntel) July 22, 2024
Mt. Gox addresses deposited $1 to 4 separate Bitstamp deposit addresses. Bitstamp is 1 of 5 exchanges working with the Mt. Gox Trustee to facilitate creditor repayments.
Mt. Gox currently holds: $6.08B in BTC
These transfers are likely to… pic.twitter.com/uyOLL7O065
- Furthermore, data from Lookonchain reveals that the US Government transferred 58.74 BTC valued at $3.96 million to CoinbasePrime, increasing its total holdings to 213,239 BTC worth $14.42 billion. This unexpected transfer of funds may have triggered FUD (Fear, Uncertainty, Doubt) among traders, potentially contributing to Bitcoin's 1% price decline on Monday.
The #USGovernment transferred 58.74 $BTC($3.96M) to #CoinbasePrime 7 hours ago and currently holds 213,239 $BTC($14.42B).https://t.co/erV5T8x6eU pic.twitter.com/HY1CdpRQiP
— Lookonchain (@lookonchain) July 23, 2024
- Data from the CryptoQuant Bitcoin Exchange Depositing Addresses metric provides insights into the flow of Bitcoin into exchanges, which can be useful for understanding market dynamics and investor behavior.
- The decrease in deposit addresses to 25,000 signifies a pivotal signal suggesting a shift in Bitcoin holders' strategy. The reduction in addresses available for selling Bitcoin indicates a preference among investors to hold onto their assets, anticipating potential price appreciation.
- This trend reflects growing confidence among Bitcoin investors, potentially influenced by factors such as increased institutional involvement in cryptocurrencies. Reduced selling activity could limit Bitcoin supply, potentially leading to price increases amid steady or rising demand. This development is bullish, signaling expectations of higher future values in the market.
Bitcoin Exchange Depositing Addresses chart
Technical analysis: BTC struggles around the $67,000 mark
Bitcoin’s price surpassed the weekly level of $67,209 on Sunday, halting its recent upward movement. As of Tuesday, BTC retraces and trades at around $66,350 at the time of writing.
If BTC continues to retrace, it could find support at the daily level of $64,913, coinciding closely with the 61.8% Fibonacci retracement level at $64,921, derived from the June 7 swing high of $71,997 on June 7 to the July 5 swing low of $53,475 on July 5, establishing a critical zone of support that should be monitored closely.
If this area of support at $64,913 holds, BTC could rally 11% to retest its June 7 daily high of $71,997.
On the daily chart, the Relative Strength Index (RSI) and the Awesome Oscillator (AO) are trading above their respective neutral levels of 50 and zero, respectively. This robust momentum signals a strong bullish sentiment in the market.
BTC/USDT daily chart
However, a close below $56,405, accompanied by a formation of a lower low on the daily timeframe, could indicate sustained bearish sentiment. Such a scenario might precipitate a 7.5% decline in Bitcoin's price, potentially leading to its daily support level at $52,266.
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
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