Key Points
- Bitcoin ETFs continue to see positive inflows despite the cryptocurrency’s falling price.
- Bitcoin miner revenues have significantly dropped over the past month.
Despite the recent drop in Bitcoin (BTC)‘s price below $60,000, Wall Street appears to remain hopeful about the cryptocurrency’s future.
Wall Street’s Positive Outlook
Recent data shows cumulative net inflows of $15.50 billion since launch, with daily inflows averaging around $79 million. This marks the sixth consecutive day of positive net flows for these ETFs, suggesting a persistently bullish sentiment among investors.
However, the Grayscale Bitcoin Trust ETF (GBTC) experienced a different trend, with daily net outflows of $38 million on 11 July, leading to total net outflows of $18.7 billion.
Asia’s Growing Interest
In Asia, the emerging HK Spot Bitcoin ETF market is also gaining momentum. Since its inception, it has accumulated total net assets of $251.4 million. This ETF recorded daily net inflows of 22 Bitcoin on 11 July, equivalent to approximately $1 million, indicating an increasing investor appetite for Bitcoin in the region.
Significant inflows into ETFs can offer price support for Bitcoin, particularly during market corrections. ETFs can act as buying pressure and potentially offset substantial price drops.
While Wall Street investors are showing interest in BTC, the same cannot be said for crypto investors. Data analysis reveals a recent decline in both whale and retail interest in BTC.
Miner Revenue Declines
Another factor that could impact BTC’s status and create additional selling pressure is the state of the miners. Over the past month, the revenue earned by Bitcoin miners has significantly decreased. This could force miners to sell more BTC to stay profitable, creating selling pressure on the cryptocurrency.
With the German government finally completing the sale of its seized BTC holdings, selling pressure on BTC could increase in the coming days. This could potentially lead to a rise in negative sentiment across the board.
