Bitcoin (BTC) News Today: Can ETF Inflows Offset Mt. Gox’s BTC Supply?

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Updated: Jul 23, 2024, 07:39 GMT+00:00

Key Points:

Bitcoin (BTC) slipped by 0.08% on Monday, July 22, ending the session at $67,598.
Mt. Gox repayments and oversupply concerns left BTC and the broader crypto market in negative territory.
On Tuesday, July 23, US BTC and ETH-spot ETF market flow trends and Mt. Gox-related updates require consideration.

Market Overview

On Monday, July 22, BTC slipped by 0.08%. Partially reversing a 0.84% gain from Sunday, July 21, BTC ended the session at $67,598. Significantly, BTC ended its three-day winning streak.

Mt. Gox Repayment Plans

On Monday, Arkham Intelligence shared Mt. Gox’s recent crypto address activity, stating,

“Mt. Gox addresses deposited $1 to 4 separate Bitstamp deposit addresses. Bitstamp is 1 of 5 exchanges working with the Mt. Gox Trustee to facilitate creditor repayments. Mt. Gox currently holds $6.08B in BTC. These transfers are likely to represent test transactions.”

Arkham Intelligence also provided the four Bitstamp addresses for investors to monitor separately.

Mt. Gox plans to repay over 141,000 BTC to its creditors after collapsing in February 2014. The markets expect the creditors to sell their BTC to lock in substantial profits. BTC was less than $600 at the time of the collapse. Investor concerns about Mt. Gox repayments and a BTC oversupply affected BTC demand.

However, robust demand from the US BTC-spot ETF raises hopes that it can absorb the Mt. Gox supply without a BTC crash.

US BTC-Spot ETF Market Inflow Streak Extends to Twelve Sessions

On Monday, the US BTC-spot ETF market extended its net inflow streak to 12 sessions. However, demand for BTC-spot ETF waned as investors awaited Mt. Gox’s repayment plans for the next batch of BTC to its creditors.

According to Farside Investors,

On Monday, VanEck Bitcoin Trust (HODL) had outflows of $38.4 million. (Friday, July 19: Inflows of $41.8 million).
Fidelity Wise Origin Bitcoin Fund (FBTC): Inflows of $23.7 million. (Friday: Inflows of $141.0 million).
Invesco Galaxy Bitcoin ETF: Inflows of $13.7 million.
Excluding flow data for iShares Bitcoin ETF (IBIT) and Bitwise Bitcoin ETF (BITB), the US BTC-spot ETF market saw total net inflows of $6.9 million.
On Friday, the US BTC-spot ETF market reported total net inflows of $427.2 million.

A rebound in US BTC-spot ETF market inflows could help cushion the impact of Mt. Gox creditors selling their BTC. However, it could hinge on how much BTC creditors sell.

Based on July’s flow trends, the US BTC-spot ETF market may take 6-8 weeks to absorb the excess supply if creditors sell all their BTC.

SEC Approves US ETH-Spot ETFs

On Monday, the SEC gave US ETH-spot ETF issuers the green light to launch.

Bloomberg Intelligence Senior ETF Analyst Eric Balchunas commented,

“It’s official: Spot Eth ETFs have been made effective by the SEC. The 424(b) forms are rolling in now, the last step = all systems go for tomorrow’s 930am launch. Game on.”

US ETH-spot ETF market flow trends will be crucial. Similar demand to the US BTC-spot ETF market could signal an ETH return to $4,000.

Investors should remain alert. Mt. Gox-related updates and US BTC-spot ETF flow data will influence the crypto market. Monitor real-time data and expert commentary to adjust your trading strategies accordingly. Stay up-to-date with our latest news and analysis to manage crypto market risk.

Technical Analysis

Bitcoin Analysis

BTC remained well above the 50-day and 200-day EMAs, sending bullish price signals.

A BTC break above the $69,000 resistance level would support a move to $70,000. A breakout from $70,000 could give the bulls a run at the March 2024 all-time high of $73,808.

BTC-spot ETF market flow trends and Mt. Gox-related news require consideration.

On the other hand, a drop below the $64,000 support level and the 50-day EMA could give the bears a run at the $60,365 support level.

With a 65.20 14-Daily RSI reading, BTC could return to $70,000 before entering overbought territory.

BTC Daily Chart sends bullish price signals.

BTCUSD Daily Chart 230724

Ethereum Analysis

ETH sat above the 50-day and 200-day EMAs, confirming the bullish price trends.

A break above the $3,480 resistance level would support a return to $3,600. A breakout from $3,600 could give the bulls a run at the $3,835 resistance level.

US ETH-spot ETF market-related updates also require consideration.

Conversely, an ETH drop below the 50-day EMA may signal a fall to the $3,244 support level.

The 14-period Daily RSI reading, 56.96, indicates an ETH move through the $3,835 resistance level before entering overbought territory.

ETH Daily Chart sends bullish price signals.

ETHUSD Daily Chart 230724

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.