- Spot Bitcoin ETFs have seized the opportunity presented by the recent price dip to make substantial purchases.
- Data from on-chain analysis platform Santiment reveals that the volume of the top 7 spot Bitcoin exchange-traded funds (ETFs) has reached its highest level since May 15.
- Santiment suggests that these volume increases could indicate a potential price recovery, stating that the recent surges are likely a “buy the dip” reaction:
The volume of the largest 7 Bitcoin ETFs has soared to its highest level since May 15. When such volume spikes occur, the chances of price recovery are higher. This latest surge was probably a dip buying response.
Historical Performance of Bitcoin ETFs Indicates Potential Gains
On June 11, these ETFs collectively undertook purchases amounting to $2.89 billion. Comparatively, on May 15, this figure stood at $2.91 billion.
Correlation Between ETF Purchases and Bitcoin Price Increases
On May 15, the average Bitcoin price hovered around $63,000. Following the substantial acquisitions, the price escalated approximately 7%, reaching $67,400. This upward momentum led to another rally, with Bitcoin’s price peaking at $72,000 on May 21.
Impact of Upcoming U.S. Inflation Data on Cryptocurrency Market
With U.S. inflation data expected to be released soon, anticipations for a rebound in the cryptocurrency market are strengthening. Such economic indicators play a crucial role in shaping market sentiments.
Conclusion
The recent spike in Bitcoin ETF volumes could signal a potential recovery in Bitcoin prices, demonstrating the persistent optimism among investors. As the market awaits forthcoming economic data, the outlook for Bitcoin and the broader cryptocurrency market remains cautiously optimistic.
