Bitcoin, the world’s largest cryptocurrency, has once again surpassed the $70,000 mark, signaling resilience in the face of recent outflows from US exchange-traded funds (ETFs). Despite last week’s withdrawals totaling nearly $900 million from these ETFs, Bitcoin enthusiasts remain undeterred, propelling the digital asset back into the $70,000 territory.
On Monday, Bitcoin experienced a notable surge, climbing as much as 7.1% to reach $70,816, marking its first foray above $70,000 in over a week. Other digital assets also saw gains, with Ether up around 6%, while Solana and Dogecoin each rose more than 4%.
The significant outflows from ETFs last week were attributed to ongoing withdrawals from the Grayscale Bitcoin Trust, as well as a slowdown in subscriptions for offerings from major financial institutions like BlackRock Inc. and Fidelity Investment. This collective exodus resulted in one of the worst weeks of the year for the group of 10 funds, which were launched in January.
Despite the outflows, market sentiment remains optimistic, with Nathanaël Cohen, co-founder at digital-asset hedge fund INDIGO Fund, noting that order books indicate strong demand around the $60,000 mark. Cohen suggests that the market is eager to “buy the dip,” indicating a willingness to acquire Bitcoin at lower levels and generate momentum for further upward movement.
The surge in demand for Bitcoin ETFs has been a key driver of the cryptocurrency’s historic rally this year. Inflows into these funds have fueled optimism about the exponential growth of the asset class, attracting a broader range of investors. However, last week’s significant outflows prompted traders to hedge against lower prices and led to substantial liquidations in leveraged bullish bets in the crypto futures market.
Despite these challenges, Bitcoin’s resilience and ability to rebound above $70,000 underscore the enduring strength of the cryptocurrency market. As Bitcoin continues to navigate through fluctuations and external pressures, its ability to maintain high levels of investor interest and market capitalization reaffirms its position as a leading digital asset in the global financial landscape.