Bitcoin has bounced back above the $70,000 mark, signaling resilience among cryptocurrency enthusiasts in the face of recent outflows from US exchange-traded funds (ETFs).
On Monday, most digital assets experienced gains, with Bitcoin surging as much as 5.8% to reach $70,014, marking its return to the $70,000 level after more than a week. Ether also saw an increase of around 5%, while Solana and Dogecoin recorded gains of over 4%.
Last week, approximately $900 million was withdrawn from these ETFs, reflecting ongoing outflows from the Grayscale Bitcoin Trust, as well as reduced subscriptions for offerings from BlackRock Inc. and Fidelity Investment. This trend resulted in one of the worst-performing weeks of the year for the group of 10 funds since their launch in January.
Nathanaël Cohen, co-founder at digital-asset hedge fund INDIGO Fund, noted, “Even though ETF inflows have hit a drag, order books are loaded on the bid side around the 60k area, showing that the market is eager to buy the dip.” He emphasized the importance of obtaining liquidity at lower levels to fuel upward momentum.
The recent demand for Bitcoin ETFs has been a significant factor driving the cryptocurrency’s historic rally this year. Strong inflows into these funds have fueled optimism about the asset class’s exponential growth among a broader range of investors. However, last week’s substantial outflows prompted traders to hedge against lower prices and led to significant liquidations in leveraged bullish positions in the crypto futures market.
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