In total, digital asset investment products attracted over US$64 million in inflows over the last week. However, most of these were allocated to short-bitcoin investment products. In addition to the US, small flows were also seen in other countries such as Canada, Switzerland, and Brazil. These countries had total inflows of around $20 million, according to Coinshares.
Ethereum Breaks 11-Week Outflows Spell
According to analysis from real-time DeFi explorer AnalytEx, after 11 weeks of outflows, Ethereum received $5 million in inflows last week, which broke the outflows’ 11-week streak. The gas price of Ethereum was around 65.94 gwei in May and 55.26 in June.
From May 1 to May 31, the number of Ethereum transactions was 34,961,397, and from June 1 to June 30, the number was 31,087,190. It represents a decrease of 8% in the average daily transactions.
In June, the gas price of Ethereum did not reach a significant peak. It was only slightly higher during the day on June 13, when the total market capitalization of the leading cryptocurrency fell below $1 trillion. On that day, the number of transactions on the network increased by 10%. Meanwhile, the price of gas on the platform rose by 148%.
The whales started buying assets on the Ethereum network during the panic sale and general decline. A total of $75 million worth of assets were purchased, of which $50 million was in wBTC.
AnalytEx data also showed the number of transactions and active crypto wallets on the Ethereum network decreased during a bear market period. It led to a significant decrease in the gas price. The number of transactions on the network also changed significantly, reducing by 15.82%. Despite the overall decline in the market, people are still prone to panic sales due to the volatility of cryptocurrencies. The number of Masterchef contract signatures and new coins issued by the platform are also decreasing.
Bitcoin Support at $19,000
The short-bitcoin market could experience a reversal of negative sentiment due to the US’s first-time access to the digital asset market.
In the week ending July 3, Bitcoin only saw a small number of inflows, with just over US$6 million. On the other hand, Short-Bitcoin saw record inflows following its launch in the US.
After struggling to maintain a price of around $19,000 last week, bitcoin finally found its footing and hit a new cycle high of $19,000. This move is significant for the digital asset as it was where its previous peak occurred.
Although Bitcoin has broken below its 200-day moving average multiple times this year, it looks like the bulls have finally found their footing. The support at 19,000 is starting to grow. The sudden increase in short-term Bitcoin value is attributed to the actions of investors who are looking to buy it for cheap. Most of the time, these individuals are whales. Despite the low investor sentiment, they continue to fill their bags.
According to the Bitcoin Foundation, wallets with over 1,000 Bitcoin on their balances have increased by over 30,000 in the past month. These so-called bitcoin whales now hold over 860,000 Bitcoin.
In addition to the whales, other individuals are also starting to buy up bitcoin at these high prices. For instance, smallholders with less than a thousand Bitcoin units have begun adding to their balances at around 36,750 BTC per month.
BTC Price To Hold?
Bitcoin started the week on a positive note after hitting a recovery high of around $19,300 in the early hours of Monday. Although it wasn’t a significant move, it boosted the digital asset’s value throughout the day.
Despite the positive technical indicators, bitcoin remains below critical technical levels. It makes it difficult for the digital asset to maintain its recovery trend during the rest of the week. The lack of demand for digital currency also means the selling pressure will continue.
The price is likely to recover above $19,500, but it is still possible for it to fall back to the $19,000 support area. It will put the rising support at the $19,000 level under pressure. If the market continues to see a spike in demand, the next resistance level is at $20,500.