bitcoin exchange-traded funds (ETFs) in the United States recorded their largest daily inflow in nearly a month on Monday, totaling $129 million. Based on historical price trends, bitcoin looks set to start July on a bullish note.
<blockquote class="twitter-tweet”>
NEW: twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin ETFs saw $130 million inflows yesterday, the most in three weeks.
We're back photo.twitter.com/ahvdm0hoS2
— bitcoin Magazine (@BitcoinMagazine) twitter.com/BitcoinMagazine/status/1808057041123950652?ref_src=twsrc%5Etfw”>July 2, 2024
This marked the fifth consecutive day of positive flows and the highest daily amount since June 7.
Much of Monday’s capital inflow went to Fidelity’s Wise Origin bitcoin Trust, which saw $65 million flow into the fund. Bitwise’s bitcoin ETF raised $41 million, while Ark Invest’s fund attracted $13 million. The two largest bitcoin ETFs, BlackRock’s iShares Trust and Grayscale’s fund, saw no flows.
The new inflows are a welcome sign after a tumultuous June in which bitcoin ETFs lost nearly $1 billion in total. The selling pressure was mirrored in the price of bitcoin, which briefly dipped below $20,000 in June.
But historically, July has kicked off a bullish period for bitcoin. Over the past decade, bitcoin has posted average returns of over 11% in July, with positive performance 70% of the time.
Some analysts believe seasonality could reappear in July if spot ETF inflows persist. The theory suggests predictable cycles driven by investors selling around tax season and re-entering the market later in the year.
Starting in July, bitcoin could also face potential selling pressure from unlocked Mt. Gox coins. Its price trajectory depends on whether bullish seasonality can offset the bearish macro picture.
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