Strong Bitcoin ETF inflows, coupled with increasing bets on the September rate cut, have boosted BTC's price upward today.
Bitcoi rebounded by 6.40% on July 6, reaching $56,975, after hitting a five-month low the previous day. This recovery indicates that traders are beginning to overcome the bearish effects of Mt. Gox's $8 billion BTC reimbursement and the recent BTC selloffs by the U.S. and German governments.
Bitcoin analysts attempt to calm panic sellers
Over the past 24 hours, top crypto analysts and influencers have been working to downplay the impact of Mt. Gox and the BTC selloffs by the German and U.S. governments on Bitcoin's long-term bullish outlook.
That includes Ki Young Ju, founder and CEO of on-chain analytics platform CryptoQuant, who reminded traders that the governments had control over $8 billion worth of BTC, which is merely 4% of the total $225 billion that has flown into the Bitcoin market since 2023.
n other words, the Bitcoin market has adequate liquidity to absorb the impact of government-led BTC selloffs, especially amid fears that the German government may dump the remainder of its Bitcoin holdings—about 42,000 BTC as of July 6—in the coming days.
Similarly, independent market analyst Trader Tardigrade likens the current Bitcoin market selloff to past black swan events, which led to sharp rebounds and subsequent extended bull cycles.
He noted:
"In 2016, 2020 and 2024, $BTC moved in the same pattern. Besides 2020, $BTC Fakeout was seen below the trendline. After reclaiming above trendline, a Bull Run follows,"
