The market has improved since the weakness seen in June and early July, but ETF inflows alone cannot confirm a trend reversal.
- Bitcoin price near $65,000 after recent surge.
- ETFs saw $1.1B net inflows last week.
- US July CPI print on Aug 12 is next major test.
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Bitcoin price surged near $65,350 in the early August 10 trade, but quickly trimmed some of those gains to trade at $64,925.18, though representing 0.29 percent up over the last 24 hours and 3.28 percent in a week.
According to crypto analysts, Bitcoin is holding just below the $65,000 level at the start of the week, having weathered a turbulent seven days that included fallout from a hardware wallet security exploit and a contentious minority-chain split, without any significant price damage.
"The US spot Bitcoin and Ether ETFs together attracted around $1.1 billion in net inflows over the past week, their strongest weekly performance since mid-April. The next major test arrives on August 12, when the US will release its July CPI inflation print," Akshat Siddhant, Lead Quant Analyst, Mudrex, said.
The analyst estimates that a reading softer than the expected 3.42 percent year-over-year could ease pressure on the Federal Reserve and push Bitcoin above the $65,500-$66,000 resistance zone. A higher-than-expected number, however, would reinforce fears of a rate hike and likely pull Bitcoin back toward the $63,000-$63,800 support band.
According to Nischal Shetty, Founder of WazirX, global macro indicators present a mixed backdrop for crypto markets. "Overall, the data supports a constructive long-term environment for crypto, although persistent inflation and monetary policy expectations may keep near-term price movements conservative."
