Bloomberg Senior ETF Analyst Eric Balchunas believes that Bitcoin is showing signs of recovery. The cryptocurrency has gained approximately 8% in value since July 4th, outperforming many assets during this period.
In parallel with the recovery in BTC price, demand for spot Bitcoin ETFs traded in the US has strengthened again. According to Balchunas, spot Bitcoin ETFs recorded net inflows of approximately $750 million in the last week.
However, it is difficult to be entirely confident that the current upward movement will be permanent. Balchunas noted that a recovery after the previous sharp pullback was not surprising, but added that the price's future direction is not yet clear.
The selling by early investors who have been in the market for a long time has put pressure on the Bitcoin price, according to Balchunas. He stated that if these investors stopped selling, Bitcoin could experience a stronger recovery.