Bitcoin Price Rebounds 5% to $55,600 as ETFs Hit $5 Billion Daily Trading Volume, Marking 4-Month High
High trading volumes and Bitcoin’s price rebound show strong market resilience and ongoing investor confidence despite market fears. Major ETFs like BlackRock’s IBIT and Fidelity’s FBTC highlight increasing institutional interest, significantly impacting cryptocurrency market dynamics and stability. On August 5, spot Bitcoin (BTC) exchange-traded funds (ETFs) in the US reached a significant milestone, surpassing $5 [...]
- High trading volumes and Bitcoin’s price rebound show strong market resilience and ongoing investor confidence despite market fears.
- Major ETFs like BlackRock’s IBIT and Fidelity’s FBTC highlight increasing institutional interest, significantly impacting cryptocurrency market dynamics and stability.
On August 5, spot Bitcoin (BTC) exchange-traded funds (ETFs) in the US reached a significant milestone, surpassing $5 billion in daily trading volume for the first time since mid-April. The continuous strong inflows into Bitcoin ETFs and the cryptocurrency’s ability to hit new highs indicate a resilient market driven by institutional and investor interest, as reported in an earlier CNF update today.
As we note the Bitcoin price rebounding 5% to $55,600 and ETFs hitting $5 billion in daily trading volume, marking a 4-month high, specific ETFs have led the charge. BlackRock’s iShares Bitcoin Trust (IBIT) dominated with nearly $3 billion in trading volume and saw its assets under management rise by $172 million.
In addition, Fidelity’s Wise Origin Bitcoin Trust (FBTC) followed with over $858 million in trading volume. Grayscale’s Bitcoin Trust (GBTC) also saw substantial activity, with its volume exceeding $693 million despite an outflow of nearly $148 million.
Market Sentiment and Volume Insights
Eric Balchunas, a senior ETF analyst at Bloomberg, commented on X that high trading volume on a down day can be a “pretty reliable measure of fear.” The Crypto Fear and Greed Index registered 26 out of 100 on August 5, indicating a fearful sentiment compared to 74 points from the previous week when Bitcoin approached $70,000.
Despite this, Balchunas noted that, “deep liquidity on bad days is also a good indicator,”
This statement emphasizes that such volume is favorable for long-term market health. Subsequently, Coin Market Cap’s data today reveals that BTC’s price has surged by 7.69% over the past day to $55,192.68. See BTC price chart below.
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