Bitcoin investors are feeling optimistic as we kick off the month of July, following a lackluster second quarter. The recent influx of nearly $130 million into U.S.-listed ETFs on the first day of the month is a positive sign, especially after seeing over $900 million in outflows throughout June. Historically, July has been a good month for bitcoin, with an average gain of more than 11% over the last decade and positive returns in seven out of the 10 years.
Currently, bitcoin is trading at around $62,600, with a slight drop of about 0.15% in the last 24 hours. Despite this minor dip, professional investors are showing interest in bitcoin ETPs, with inflows of $10 million in the past week. On the other hand, ether-tracked exchange-traded products have seen outflows of over $120 million in the past two weeks, the most since August 2022. However, there is hope on the horizon as ether ETFs are nearing approval for trading in the U.S. after recent filings were approved by the SEC.
Gemini predicts that spot ether ETFs in the U.S. could see net inflows of $5 billion in the first six months, potentially boosting ether’s market value relative to bitcoin. The current AUM for spot ETH ETFs in the U.S. combined with Grayscale Ethereum Trust assets could reach $13 billion-$15 billion in the first half of the year. This positive outlook is supported by robust on-chain dynamics and the growing stablecoin environment.
In terms of technical analysis, bitcoin is aiming to break past a descending trendline, indicating a potential for near-term gains. However, on-chain analysis suggests that $65,000 could present a strong resistance level for bitcoin. Despite this, the overall sentiment seems to be shifting in favor of cryptocurrencies, with investors showing renewed interest in assets like bitcoin and ether.
Overall, the recent inflows into bitcoin ETFs and the potential approval of ether ETFs in the U.S. signal a positive trend for the cryptocurrency market. As we head further into July, investors will be keeping a close eye on key resistance levels and market dynamics to gauge the future performance of digital assets.
