Bitcoin Market Update

Returning to their screens following the July 4 break, U.S. traders were confronted with a historic plunge in bitcoin (BTC) that saw its price fall more than 10% from the pre-holiday level. Based on ETF data, they decided to lift the offer.

According to numbers compiled by Farside Investors, U.S.-based spot bitcoin ETFs saw $143.1 million in net inflows on Friday, the highest level of inflows in at least two weeks.

Leading the way was Fidelity’s Wise Origin Bitcoin Fund (FBTC), which took in $117.4 million of net new money. Other funds with net inflows were the Bitwise Bitcoin ETF (BITB), the ARK/21 Shares Bitcoin ETF (ARKB) and the VanEck Bitcoin Trust (HODL). Per usual, the high fee Grayscale Bitcoin Trust (GBTC) continued to bleed assets.

As for price action, bitcoin has seen a very modest of bounce since tumbling from nearly $61,000 Wednesday to under $54,000 early Friday, currently trading back to $56,800. That’s down 6% from the week-ago levels and roughly 23% from its all-time high above $73,500 set in mid-March.

Taking the blame for this latest downdraft in price was worry about a massive surge in supply as trustees for defunct exchange Mt. Gox began the return of 140,000 bitcoin to former customers and the German government apparently moved to sell at least some of the thousands of bitcoin it holds.