Crypto news: Bitcoin gains almost 2% amid first higher ETF funds positive net inflow 📈

The cryptocurrency market is trading in a slightly better sentiments today, with Bitcoin and Ethereum gaining close to 2%. A weaker ISM reading from US manufacturing did not put much pressure on the US dollar, and it's back on the rise after an initial slide. Yields on US 10-year Treasury bonds are rising significantly today, up 12 basis points from 4.38% to 4.47%, but the pressure from this is not particularly evident in the Bitcoin market. Data shows that ETFs resumed buying Bitcoin last Friday; recording the first major net inflows in a dozen sessions. Cryptocurrency halted declines at $60,000 level and now bulls are sending Bitcoin prices higher, to $63,000 resistance zone.

On Friday 28 June, spot ETFs in the US finally saw inflows of more than $66 million. Mostly funds were moved to BlackRock (IBIT). Source: Bloomberg Finance L.P, XTB Research

Cryptocurrency market news

• According to a report by Canaccord Genuity, more than half of the largest global hedge funds directly own, or are otherwise involved in, Bitcoin trading. The analysts estimated that the likely debut of a spot ETF on Ethereum in the future will deepen cryptocurrency 'adoption' at institutions.
• Canaccord estimates that in the second half of the year, the weakness of Bitcoin's returns against the 'classic' market' still has the potential to turn around in favor of digital assets. 
• Analysts stressed that part of the demand for ETFs is related to purchases reported by employee U.S. IRA accounts. This fact makes likely a scenario in which a sizable portion of BTC supply in ETFs will remain 'frozen' and will not be subject to 'speculative trading' - adding to the gradually declining total supply of BTC
• From the beginning of July, some 141,000 BTC (0.7% of the total supply) from the collapsed Mt.Gox exchange may begin to be 'traded' to the market, which will start repaying those affected by the hacking attack (February 2013).  The market will be closely following this issue in the coming days; as will the movements of a wallet linked to the German government, which moved another $150 million worth of confiscated cryptocurrencies (mainly BTC and ETH) with the likely intention of reselling them (1,500 BTC and 3,375 ETH, sent on July 1). Over the past 2 weeks, the wallet has sent a total of more than 2,700 BTC to exchanges and holds a total of nearly 45,000 BTC. (approximately $2.8 billion).
• Bernstein analysts pointed out that an important practical role of blockchain technology is presented by the Polymarket (Ethereum, Polygon), which offers bets based on 'futures' bets. The greatest liquidity is attracted by 'Who will win the US presidential election, in 2024?' with bets already worth more than $200 million. The market gives 63% odds to Trump and 18% for Joe Biden. The premium for betting on Biden is down more than 50% from early June levels.

Bitcoin and Ethereum (D1 interval)

The largest of the cryptocurrencies bounced off the $60,000 level and halted the decline below the 200-session average (red line), near $59,000.

Source: xStation5

Ethereum is trading near the 50-session average (orange line) - a return above $3550 could suggest more fuel for a resumption of upward momentum. The upward trend line is held despite several corrections between April and June.

Source: xStation5