The bullish sentiment seems to be back now that the crypto market has turned green. Bitcoin (BTC) and several altcoins are showing significant gains. Bitcoin, for example, has gained more than 20% since hitting a low of $53,500 on July 5, and appears to be on its way to a new all-time high (ATH).
according to Blockchain analysis platform Glassnode, the increase is mainly due to “complete exhaustion of selling pressure”. The market has been in a state of fear in recent weeks due to billions of dollars of BTC entering the market, but it seems that this is not so bad now.
Sales drain Mount. Gox and the German government
The market has recently been under heavy selling pressure, fueled in part by the German government. It sent 48,000 bitcoins it had seized from an illegal hacking site to the market. The bulk of the selling occurred between July 7 and 10, and was the main driver of the drop to $53,500.
Additionally, Glassnode analysts reported that the market appears to have already priced in the German government’s sales, which ultimately limited the impact. There were also concerns about the refunds to creditors of the bankrupt exchange Mt. Gox. Although creditors have yet to receive their bitcoins, there is a significant amount of around $9 billion worth of bitcoin. However, the selling pressure doesn’t seem to be too bad.
Glassnode also points to a “noticeable decline in exchange flows,” suggesting that selling pressure is easing. Daily volumes of the cryptocurrency sent to exchanges have declined and stabilized at around $1.5 billion per day.
Huge inflows into Bitcoin ETFs
In contrast, Bitcoin exchange-traded funds (ETFs) are seeing strong inflows, offsetting the sell-off. For example, the funds saw total inflows of over $1 billion last week.
according to facts According to analytics platform CoinShares, ETFs saw their fifth-largest weekly inflows ever, with nearly $1.35 trillion in inflows between July 8 and July 12. It’s a clear sign that institutional investors have regained confidence in the future of cryptocurrency.
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