The number of Bitcoin holders, defined as any wallets with more than zero coins, has been dropping sharply. Traders seem to believe that the all-time high (ATH) reached in March was the peak for 2024.
Despite this pessimism, mass liquidations often set the stage for a rebound.
👋 Bitcoin's amount of holders (any wallets with >0 coins) have been dropping aggressively as traders still seem to believe the March ATH was as good as it's going to get in 2024. When we see mass liquidations like this, the probability of a continued rebound only increases. pic.twitter.com/YTHEFTtfhY
— Santiment (@santimentfeed) July 17, 2024
Mt. Gox, once the world’s largest Bitcoin exchange, handling over 70% of Bitcoin trades by early 2014, is finally set to compensate its creditors with over $9 billion after a decade of legal battles. This significant development has added another layer of complexity to the current market dynamics.
https://twitter.com/C__thumbs/status/1813603898399109282?t=3SulRa5jcT7IIwwEu2J1VA&s=19
As Bitcoin prices fell towards the $54,000 mark, they dipped below the average inflow cost basis of ETF holders, which stands at $58,200. This price movement has triggered renewed interest in Bitcoin ETFs, marking the first significant inflows since early June. Last week alone, ETFs saw over $1 billion in total inflows.
As prices sold off towards the $54k low, they dropped below the average inflow cost basis of ETF holders, currently at $58.2k.
In response, the ETFs have seen their first significant tranche of positive interest since early June, with over $1B in total inflows last week alone. pic.twitter.com/7EMBWfsS3h
— glassnode (@glassnode) July 18, 2024
Bitcoin ETFs Net Inflow At $53 Million As Positive Trend Continues
On July 17, 2024, Bitcoin ETFs recorded a net inflow of $53 million. This positive trend has continued for nine consecutive trading days. Notably, BlackRock’s IBIT has experienced inflows exceeding $100 million for four straight days. Meanwhile, Grayscale’s GBTC saw a significant outflow of $53.9 million following two days of zero net flows.
🚨 $BTC #ETF Net Inflow July 17, 2024: +$53M!
• The net inflow has remained positive for 9 consecutive trading days.
• #BlackRock (IBIT) has received inflows of over $100M for 4 days in a row.
• #Grayscale (GBTC) saw a big outflow of $53.9M after 2 days of $0 net flows.… pic.twitter.com/PWq0sfO2fg
— Spot On Chain (@spotonchain) July 18, 2024
These market activities suggest a complex interplay of factors influencing Bitcoin’s price and investor sentiment. The ongoing decline in the number of Bitcoin holders indicates a lack of confidence among traders. However, the substantial inflows into Bitcoin ETFs reflect a growing institutional interest, possibly anticipating a market rebound.
As the market adjusts to these dynamics, the long-awaited compensation from Mt. Gox and the continued ETF inflows could play crucial roles in shaping Bitcoin’s trajectory in the coming months. Investors and market watchers will need to stay vigilant as these developments unfold.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Image Source: ximagination/123RF // Image Effects by Colorcinch
