Early Friday, Bitcoin's price dropped below $54,000, prompting a significant response from investors who funneled over $140 million into Bitcoin ETFs, signaling confidence in the cryptocurrency's long-term prospects. Since then, Bitcoin has seen a slight recovery.
U.S. traders, returning after the July 4 holiday, faced a sharp decline in Bitcoin's value, which fell more than 10% from pre-holiday levels. Data from Farside Investors revealed that U.S.-based spot Bitcoin ETFs experienced $143.1 million in net inflows on Friday, marking the highest level in at least two weeks.
Fidelity's Wise Origin Bitcoin Fund (FBTC) led the inflows, attracting $117.4 million in new investments. Other funds with notable inflows included the Bitwise Bitcoin ETF (BITB), the ARK/21 Shares Bitcoin ETF (ARKB), and the VanEck Bitcoin Trust (HODL). Meanwhile, the Grayscale Bitcoin Trust (GBTC) continued to see outflows.
Bitcoin's price has modestly rebounded since its drop from nearly $61,000 on Wednesday to under $54,000 early Friday, currently trading at around $56,800. This marks a 6% decline from the previous week and a 23% decrease from its mid-March all-time high above $73,500.
The recent price decline is attributed to concerns over a potential surge in supply, as trustees for the defunct exchange Mt. Gox began returning 140,000 bitcoins to former customers, and reports surfaced of the German government possibly selling some of its bitcoin holdings.
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