Bitcoin Breaks $66K as ETF Inflows Rise Amid Oil Disruption Fears

Bitcoin has broken through the $66,000 price barrier and is trading above it for the first time in over a month. The cryptocurrency's surge comes as exchange-traded fund (ETF) inflows have increased, with about $727 million flowing into US spot Bitcoin ETFs over five consecutive sessions.

This influx of capital has provided some support to the market after weeks of withdrawals. However, analysts caution that this trend is not yet a clear indication of sustained accumulation by institutional investors. In fact, the recent inflows only recover a fraction of the $9.46 billion lost during the preceding two months.

The increase in ETF demand has been accompanied by a sharp withdrawal of Bitcoin from major exchanges, which could reduce selling pressure in the short term. However, CryptoQuant data shows that about $686 million worth of Bitcoin left Binance, Bybit, Coinbase, and HTX on July 20, indicating that a significant amount of coins remain available for sale.

The market's ability to absorb supply is also weakened by the continued withdrawal of stablecoins from exchanges. CryptoQuant's 30-day moving average of stablecoin net flows has remained negative, with recent readings below -$100 million, indicating that dollar-pegged tokens are leaving exchanges faster than they are arriving.