Despite the withdrawals from US exchange-traded funds last week, bitcoin supporters seem to be brushing it off, as the largest cryptocurrency momentarily surged back above $70,000.
On Monday, most cryptocurrencies saw gains, with Bitcoin rising as much as 5.8% to $70,014. For the first time in over a week, the token's value has surpassed $70,000. Solana and Dogecoin were both up more over 4%, while Ether was up almost 5%.
Last week, ETFs witnessed a substantial outflow nearing $900 million, predominantly attributed to sustained withdrawals from the Grayscale Bitcoin Trust. This trend was further exacerbated by a slowdown in subscriptions for offerings from BlackRock Inc. and Fidelity Investment, culminating in one of the group's most challenging weeks since their inception in January. The collective impact underscored a shift in investor sentiment, reflecting caution amidst market uncertainties.
Despite the downturn, Nathanael Cohen, co-founder of INDIGO Fund, a digital-asset hedge fund, maintains an optimistic outlook. Cohen pointed out that while ETF inflows have tapered off, the presence of sizable bid orders around the 60k area suggests a strong willingness among investors to leverage market downturns as buying opportunities. This resilience not only signals a steadfast belief in the long-term potential of the market but also highlights investors' confidence in their ability to navigate short-term volatility.
