Bitcoin enthusiasts are bouncing back from last week’s U.S. exchange-traded fund (ETF) withdrawals, with the leading cryptocurrency briefly soaring above $70,000 again.
Digital assets witnessed a rally on Monday, with Bitcoin climbing up to 5.8% to reach $70,014.
This marks the token’s first venture above the $70,000 threshold in over a week. Ether enjoyed a 5% increase, while Solana and Dogecoin both surged by more than 4%.
Nearly $900 million was withdrawn from these ETFs last week, reflecting ongoing withdrawals from the Grayscale Bitcoin Trust as well as a slowdown in subscriptions for BlackRock Inc. and Fidelity Investments offerings.
This group of 10 funds experienced one of the roughest weeks of the year since its January launch.
Barket experts mentioned that order books remain densely packed with bids in the $60,000 range, indicating a strong market interest in purchasing during price dips.
“We need to seek liquidity at lower levels before making a bid and creating momentum to rise.”
The recent surge in Bitcoin ETF demand has been a key driver behind the cryptocurrency’s historic rally this year.
Strong inflows into the funds sparked optimism among a broader range of investors for exponential growth in the asset class.
Last week’s large fund outflows led to increased hedging against lower prices and major liquidations of leveraged bullish bets in the cryptocurrency futures market.