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.
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.
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.
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.
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.
Follow us on Twitter @themerklehash to stay updated with the latest Crypto, NFT, AI, Cybersecurity, and Metaverse news!
Image Source: ximagination/123RF // Image Effects by Colorcinch
The Fresh New Memecoin Leaving Rivals (PEPE) and (BONK) For Dead A new memecoin has…
The world of finance is going through a seismic shift, and at the heart of…
Discover How Qubetics Solves Blockchain Fragmentation with Interoperability and Provides Early Access Through Its Whitelist…
The much-awaited Ether ETF launch was expected to play a massive role in Ethereum’s (ETH)…
Amid the ongoing market-wide correction, decentralized exchanges on Ethereum (ETH) have recorded substantial increments in…
It's the season of bears in the crypto market, and even the top altcoins are…