Bitcoin has shown signs of recovery at the start of the week, spurred by comments from New York Federal Reserve President John Williams. Williams indicated that interest rates could be lowered soon, citing growing concerns about weakness in the labor market. The cryptocurrency, which had previously fallen to a low of $80,500 last week—its lowest point since April—has now rebounded to approximately $86,000.
According to Simon Peters, Crypto Market Analyst and UK Account Management Team Leader at eToro, the recent price pullback is not unusual for Bitcoin. Peters explained that volatility of this magnitude is typical for the digital asset, noting that Bitcoin has experienced multiple drawdowns of over 30% in recent years. The most recent significant correction occurred between January and April, when Bitcoin dropped from $109,000 to $74,500 before rallying 70% to reach its all-time high of $126,300. While that decline was more gradual, he observed that the latest correction has been sharper.
Despite the increased volatility, Peters maintains that the long-term market structure for Bitcoin remains intact. The cryptocurrency continues to exhibit a pattern of higher highs and higher lows, indicating a sustained long-term uptrend. With the current price sitting approximately 30% below its all-time high, Peters suggests that if historical patterns repeat, the market may be approaching the bottom of this correction. He also pointed out that on-chain data indicates that large wallet holders, often referred to as "whales," have begun repurchasing Bitcoin, signaling renewed confidence among major investors.
Key Market Movements
Bitcoin Cash (BCH) experienced a notable increase of 10% last week. This surge followed news on Friday that mF International, a Nasdaq-listed fintech company, had raised $500 million for a bitcoin cash treasury. Prior to this announcement, on-chain data revealed that several large wallets had been accumulating BCH in the preceding days, which likely provided support to its price amidst a broader downturn in the crypto markets.
Bitcoin Cash was created in 2017 as a result of a hard fork from the original Bitcoin cryptocurrency.
Notable ETF Performance
BlackRock's IBIT, a spot Bitcoin ETF, recorded its largest single-day outflow since its inception in January 2024, with outflows amounting to $523 million last Tuesday. Over the course of the previous week, IBIT saw net outflows totaling $1.08 billion as institutional investors re-evaluated their positions in risk assets.
A similar trend was observed with ETHA, BlackRock's spot Ethereum ETF, which is currently on a nine-day losing streak, accumulating total net outflows of $980.4 million.
In contrast, spot Solana ETFs have experienced a run of net inflows, even as the underlying SOL price has declined. Bitwise's BSOL ETF, for instance, is on a 13-day net inflow streak, totaling $221 million.
Last week also saw the launch of three additional spot Solana ETFs: VanEck's VSOL, Fidelity's FSOL, and 21Shares' TSOL. These new ETFs have experienced relatively minimal inflows so far.
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