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Bitcoin Resilience Above $57,000 Amid Market Sentiment Boost

Bitcoin shows resilience above $57,000 as market sentiment receives a boost. Stay updated on the latest developments in the cryptocurrency space.

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Bitcoin displayed resilience above $57,000 after a slight dip to $55,000. The market sentiment improved as a German government agency received back over $200 million worth of Bitcoin from various exchanges, boosting confidence. During the European morning, BTC was trading around $57,400, up 1% in the last 24 hours. The recent drop to $55,000 occurred after a wallet address linked to the German Federal Criminal Police Office (BKA) transferred over $900 million to different addresses, causing concerns among traders. Notably, the BKA received refunds from exchanges like Kraken, Coinbase, and Bitstamp, indicating that the assets did not enter the market.

Spot bitcoin ETFs witnessed significant net inflows of almost $300 million on Monday, the highest since early June when Bitcoin was trading above $70,000. BlackRock’s IBIT led the inflows with nearly $180 million, followed by Fidelity’s FBTC. Even Grayscale’s GBTC, known for outflows, saw over $25 million in purchases. Some investors view the price drop as a buying opportunity, as highlighted in a report by investment firm CoinShares. Traders are optimistic about July, historically a bullish month for the crypto market, with an average return of 9%.

Data from Coinwarz revealed a notable drop in Bitcoin mining difficulty from 83.6 TH/s to 79.50 TH/s on June 5, resembling levels last seen in March. This significant adjustment is among the largest since the market turbulence following the collapse of crypto exchange FTX, which caused a more than 10% drop in Bitcoin prices. Lower mining difficulty can benefit smaller miners and dormant farms, potentially increasing profits. In June, miners were significant sellers of Bitcoin, offloading over $1 billion worth of BTC when prices ranged between $65,000 and $70,000.

Chart of the Day – Omkar Godbole

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