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Blackrock Weekly Bitcoin ETF Inflows Surpass $1 billion

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blackrock bitcoin etf inflows

Bitcoin’s recovery in the last 7 days saw the return of institutional demand with Blackrock once again leading the charge in institutional accumulation. 

The extent or pace of acquisition was particularly noteworthy. Bitcoin ETF flows during the week were positive, with Blackrock doing most of the heavy lifting.

Blackrock reportedly injected over $1.3 billion into Bitcoin. The observation validated previous findings which revealed that Blackrock had been investing heavily in the cryptocurrency.

In total, about $2.2 billion worth of liquidity flowed into Bitcoin ETFs during the week.

The robust inflows into Bitcoin ETFs were largely driven by recovery. This was after BTC previously dipped below $100,000. The ETF flows confirmed that ETF demand remained strong and it was also aided by a cooling down of geopolitical tensions.

Moreover, the institutional activity also aided in the cryptocurrency’s robust recovery by more than 9% from its lowest weekly price. But while this confirmed strong institutional interest, demand was also expanding at state level.

More Countries are Reportedly Planning to Integrate Bitcoin in Their Financial Systems

The U.S has been leading the charge when it comes to Bitcoin adoption at state level. However, other countries across the world have been demonstrating interest in the cryptocurrency.

Ujjwal Deep Dahal, the head of Bhutan’s sovereign wealth fund recently described Bitcoin as a store of value just like Bitcoin. The statement underscored the same approach that countries interested in the cryptocurrency have been taking.

More importantly, the growing number of countries viewing Bitcoin as a store of wealth reflects the bullish sentiment in the market. It may explain why companies like Blackrock have been buying Bitcoin aggressively.

Analysts believe that the trend was a sign that investors and countries are now, more than ever, convinced of the failings of traditional finance. As a result, Bitcoin may turn out to be a healthy solution in case of major disruption that warrants transfer of safe havens to avoids liquidity erosion.

The prospects of more countries joining the trend suggests that Bitcoin could potentially experience more demand in the future. The only thing that can rival heavy institutional demand is heavy inflows from government purchases across the world.

Can Bitcoin Maintain the Recovery for More Upside?

Bitcoin has been moving within a narrow range with resistance building up above $110,000 and demand making a comeback near $100,000.

This scenario played out earlier in the week as the cryptocurrency briefly dipped below $100,000. Interestingly, the recent pullbacks have demonstrated the formation of a descending resistance despite the strong recovery.

This descending resistance could dictate the next possible outcome. For example, a breakout above it could signal a pattern break that may usher in more upside and potentially new ATHs.

On the other hand, if the resistance line holds strong it could pave the way for another retracement.

Bitcoin’s MFI indicator demonstrated a bit of downside at the 50% level, signaling potential profit-taking after the latest rally.

Derivatives data confirmed a 45% decline in the last 24 hours, signaling a slowdown in activity. These observations suggest that short term price swings were to be expected. However, Bitcoin exchange outflows regained the downside in the last 7 days.

That means fewer Bitcoin were available on exchanges. As a result, analysts foresee a supply shock down the road considering that demand is slated to maintain upside in the longer term. But what about the situation in the short term?

Bitcoin this year has demonstrated sensitivity to global events. In other words, BTC’s price action in July could still be heavily influenced by global events and uncertainty at least in the short term.

The post Blackrock Weekly Bitcoin ETF Inflows Surpass $1 billion appeared first on The Coin Republic.

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