On Tuesday (July 23), Bitcoin fell back below $67,000. Although the panic of the former largest crypto exchange Mt.Gox repaying creditors' funds still exists, the Bitcoin sentiment indicator shows "Greed". The inflow of Bitcoin Spot ETF (IBIT) under BlackRock, a Wall Street asset management giant that manages more than $10 trillion, hit a new high since March, reaching $523 million.
BlackRock IBIT's increase on Monday brought its total inflows to 333,000 bitcoins, equivalent to $22 billion at current prices, the seventh-largest single-day record for IBIT's dollar inflows ever.
Looking back, IBIT welcomed its largest single-day capital inflow on March 18, with $849 million worth of Bitcoin flowing into the fund that day.
The second-largest single-day inflow on record came on March 5, when the fund took in $788 million, according to Farside Investors data.
CoinTelegraph pointed out that BlackRock IBIT’s blockbuster transaction occurred on the same day that the Ethereum spot market surged. It is reported that the Ethereum spot ETF has been approved for listing and trading in the United States.
Several analysts interviewed on Sunday were optimistic about Bitcoin's short- to medium-term prospects, pointing to U.S. President Joe Biden's last-minute withdrawal from the November election and the increased likelihood of a win by Republican presidential candidate Donald Trump as catalysts for the strong rally in Bitcoin prices.
Markus Thielen, founder of 10x Research, speculated that Republican candidate Donald Trump is likely to unexpectedly announce Bitcoin as a strategic reserve asset at the Bitcoin 2024 conference in Nashville on July 25. He added that this could trigger a "parabolic" trend in Bitcoin prices in the coming weeks.
Bryan Courchesne, founder of crypto asset management firm DAIM, also expressed this prediction, saying that Trump is likely to designate Bitcoin as a strategic reserve asset at the meeting.
Despite the positive news, the market cannot ignore the panic of Mt. Gox's repayment plan. Arkham Intelligence pointed out: "Mt. Gox addresses deposited $1 to four separate Bitstamp deposit addresses. Bitstamp is one of the five exchanges working with the Mt. Gox trustee to facilitate creditor repayment. Mt. Gox currently holds $6.08 billion worth of Bitcoin. These transfers are likely to represent test transactions."
Mt. Gox planned to repay more than 141,000 bitcoins to creditors after its collapse in February 2014, and the market expected creditors to sell their bitcoins to lock in considerable profits. At the time of the collapse, bitcoin was less than $600. Investor concerns about Mt. Gox's repayments, as well as an oversupply of bitcoins, have affected demand in the crypto market.
Bitcoin Technical Analysis
According to Alternative.me data, Bitcoin’s Greed and Fear Sentiment Index currently points to the “greed” zone of 71.
FXEmpire analyst Bob Mason said Bitcoin remains well above the 50-day and 200-day EMAs, sending a bullish price signal.
Bitcoin’s move above the $69,000 resistance level will support its move to $70,000. A break above $70,000 could allow bulls to rush towards the March 2024 all-time high of $73,808.
On the other hand, a break below the $64,000 support and the 50-day EMA could allow the bears to target the $60,365 support.
If the 14-day RSI reads 65.20, Bitcoin could rally back to $70,000 and then move into overbought territory.
