Bitcoin (BTC) has experienced a significant 9% rebound in the last 24 hours, and investors in spot BTC exchange-traded funds (ETFs) have demonstrated tenacity.
On August 5th, ETFs such as BlackRock’s IBIT did not experience any outflows, while significant alternative cryptocurrencies like Solana’s (SOL) saw a gain of 21.4%. This recovery may be an organic response to the market, as BTC had the most significant downturn of the current cycle, with a 29% decline over two weeks.
If macroeconomic conditions deteriorate, Bitcoin may return to the $49,000 price region, which has thus far served as a short-term support level. Bitcoin has the potential to increase in value and reach a price range of $59,400 to $62,550.
This price range is significant because it represents a new “CME gap” that emerged following the crash on August 4th. The trading volume of Bitcoin ETFs reached its highest level since mid-April, over $5 billion.
According to Eric Balchunas, a senior ETF analyst at Bloomberg, trading volumes on days with negative market performance serve as a dependable indicator of concern.
However, the high level of liquidity observed yesterday is considered favorable by institutional investors when they are investing in an ETF. Although there was a significant amount of trading activity, just $168 million was withdrawn from the spot Bitcoin ETFs yesterday, representing a mere 0.3% of the total assets being managed.
