Bitcoin miners appear to be capitulating, which could signal a bullish reversal, according to ARK Invest.
In a report released on July 18, ARK Invest, an asset management firm, stated that Bitcoin became oversold in June following a multibillion-dollar sell-off by the German government. This sell-off involved 50,000 BTC seized in a 2020 police operation against Movie2k, a platform for pirated content.
The German government’s action caused Bitcoin prices to plummet from highs above $70,000 in early June to a low below $55,000 in July.
The report, which includes data through June 30, noted: “Based on short-term-holder realized profits/losses and miner outflows, Bitcoin appears oversold. Current levels of miner outflows suggest that miners are capitulating, a harbinger of a bullish reversal.”
ARK Invest also pointed out that the demand for Bitcoin exchange–traded funds (ETFs) remained strong despite the sell-off. The sharp drop in Bitcoin’s price did not lead to a significant withdrawal from spot BTC ETFs. As of June 30, the decrease in Bitcoin’s spot price exceeded the 30-day percent change in BTC ETF flows by 17.3%.
In July, BTC ETFs saw substantial net inflows, with approximately $1.35 billion entering the funds in the week ending July 15, according to CoinShares. BlackRock’s iShares Bitcoin Trust (IBIT) recorded $107 million in inflows on July 18, marking nine consecutive days of inflows, according to Thomas Fahrer, co-founder of crypto data platform Apollo.
Summary Review: ARK Invest’s analysis suggests that the recent sell-off may have positioned Bitcoin for a potential bullish reversal, supported by strong investor interest in BTC ETFs.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
