Bitcoin exchange-traded funds (ETFs) in the U.S. experienced a significant uptick in inflows on Monday, reaching a total of $129 million, the largest daily inflow in almost a month. This positive trend marked the fifth consecutive day of positive flows, with much of the new investments going to Fidelity’s Wise Origin Bitcoin Trust, Bitwise’s Bitcoin ETF, and Ark Invest’s fund. The two largest Bitcoin ETFs, BlackRock’s iShares Trust and Grayscale’s fund, did not see any new inflows on Monday.
This surge in inflows comes as a welcome sign after a challenging month of June, where Bitcoin ETFs faced a total of nearly $1 billion in outflows. The selling pressure in June reflected Bitcoin’s price drop below $20,000 briefly during that period. However, historical data shows that July has historically been a bullish month for Bitcoin, with average returns exceeding 11% and positive performance 70% of the time over the last decade.
Analysts believe that if spot ETF inflows continue in July, seasonal trends could play a significant role in Bitcoin’s performance. Some theorize that predictable cycles driven by investors selling around tax season and re-entering the market later in the year could contribute to a bullish period for Bitcoin. However, potential selling pressure from unlocked Mt. Gox coins could also impact Bitcoin’s price trajectory in July, as the cryptocurrency navigates between bullish seasonality and a bearish macro landscape.
Overall, the recent uptick in Bitcoin ETF inflows and the positive historical performance of Bitcoin in July suggest that the cryptocurrency may be poised for a bullish start to the month. Investors will be closely watching how these factors play out, as Bitcoin continues to be a popular investment choice in the ever-evolving financial landscape. With the potential for continued inflows into Bitcoin ETFs and the support of historical data, July could prove to be a promising month for Bitcoin and its investors.