Bitcoin briefly traded above $65,000 on July 15, marking its first time at that level in four weeks. While the price didn't remain above this threshold for long, it may signal the start of a recovery.
Despite reaching new heights, Bitcoin is still 48% below its peak. The cryptocurrency's price action has been driven by various factors, including regulatory and industry developments, as well as relief from bad news.
Investors are advised to ignore near-term noise and focus on one key factor: exchange-traded funds (ETFs). On July 14, ETFs saw $181 million in net inflows, which could be a sign of fresh demand for Bitcoin exposure. The iShares Bitcoin Trust's asset base is currently at $47 billion, down from its peak of around $100 billion.
The decline represents the current bear market that Bitcoin is experiencing. While it's impossible to know when the next bull market will arrive, patient investors who remain focused on the long term have historically reaped rewards during the cryptocurrency's ascent.