On July 21, Bitcoin (BTC) witnessed upward momentum after witnessing steady inflows for 5 consecutive days in exchange-traded funds.
Bitcoin ETF Records Steady Inflows Despite Turmoil in Crypto Market
On July 20, Bitcoin ETFs recorded $226.8 million in inflows, according to Farside. This is the fifth straight day of positive flows, bringing the total to $723.3 million. This is the longest winning streak since May. This is a sign of a strong rebound in investor confidence after turmoil in the crypto market.
The steady inflows into Bitcoin ETFs are showing that institutional investors are comfortable with the current prices. The funds have recorded positive flows on many days in early-to-mid July, including big days like $265.7 million on July 6 and $221.7 million on July 2, which ended a 10-day outflow streak that had pulled over $2.7 billion out of the funds.
The recent run of inflows, including $181 million, $108 million, and small positive days around July 14 to July 17, has boosted weekly totals into positive territory for the second week in a row, totalling about $273 million over two weeks. BlackRock’s IBIT, Fidelity’s FBTC, and ARK’s ARKB are leading the charge in many sessions.
The inflows come at a time when Bitcoin reclaimed $66,000, with bullish sentiment in the crypto market. At the time of writing, BTC is currently trading at around $66,340 with a spike of 1.61%, according to CoinMarketCap. The daily trading volume is around $29.72 billion, along with a market capitalization of around $1.33 trillion.
In the last 24 hours, the crypto market added approximately $63 billion in value, with major assets like Ethereum, XRP, and Dogecoin having witnessed some positive gains. In nearly a month, it is the first time that market sentiment has entered neutral territory.
Regulatory Wins in US and Russia Boost Crypto Sentiment
Today’s upward momentum in the overall crypto market comes after major regulatory developments in the digital asset sector across the globe.
In the US, the White House has reportedly reached a deal on an ethics package linked to the most awaited CLARITY Act. This bipartisan bill is expected to clarify the regulatory roles for the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The ethics dispute was the major obstacle to conflicts of interest for the regulatory bill. As the ethics dispute has now been resolved, it will increase hopes that the bill could move forward in the Senate before the August recess.
On July 21, Russia’s State Duma also passed a comprehensive crypto market law. With this legislation, cryptocurrencies will now be officially treated as property in Russia. Apart from this, it creates a regulated framework for trading and custody under Bank of Russia oversight.
It also limits non-qualified retail investors to an annual purchase cap of 300,000 rubles ($3,800). Qualified investors will face no cap, but they will have to go through risk tests. The newly passed law in Russia will take effect from September 1, 2026. However, some provisions in the regulatory framework will roll out later. This regulatory framework will open the door for cross-border settlement while completely banning domestic digital asset payments.
Bitcoin Whales Scoop Up 84,000 BTC After Price Fell Below $55,000
During the volatile period in the crypto market, Bitcoin whales took advantage of opportunities and bought a dip after its price fell below $55,000. Bitcoin whales have accumulated billions of dollars worth of BTC at lower prices during dips. According to the report, Crypto whales have accumulated more than 66,700 BTC, worth $4.415 billion, so far this month. This is one of the fastest monthly accumulations in the last few months.
“While the price of Bitcoin remains almost 50% below its peak, wallets holding between 1K and 10K Bitcoins have just accelerated their buying at the fastest pace in months,” CryptoQuant stated in the post on X.
The buying exploded after BTC dropped below $55,000 early in the month before recovering to around $66,000. While the majority of retail investors are still hesitating to invest in the crypto market, whales are seeing the current volatile period as a buying opportunity. This is a similar pattern witnessed during the accumulation phase in the last few bull runs.
Strategy has also added $500 million to its cash reserves through a new convertible notes offering, all while keeping its Bitcoin holdings unchanged. This shows the Bitcoin treasury’s confidence in the digital asset.
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