Bitcoin was last up 0.4% to $64,129.44
Bitcoin was slightly higher on Monday, helped by improving risk sentiment following positive peace talks between Iran and U.S. and a deceleration in the pace of capital outflows from spot exchange-traded funds.
Bitcoin was last up 0.4% to $64,129.44 by 21:45 GMT.
Alongside price, the second metric I’d watch is the network’s hashrate. Bitcoin’s difficulty has swung into double digits between adjustments more than once this year – and that’s miners switching on and off with the price, not the AI-migration story it sometimes gets read as, Matteo Spinosa, top boss at Doefin, told Investing.com.
Hashrate tracked June’s price slide closely, this is the cost of production repricing with the cycle, the way it’s designed to. As price moves, marginal miners come on and offline, hashrate follows, and difficulty resets about two weeks later – so price volatility increasingly shows up as volatility in the cost of production, he added.
An ongoing sell-off in spot Bitcoin ETFs continued to grab attention. Spot ETFs marked a sixth straight week of outflows last week.
Bitcoin’s ETF outflows look ugly on the surface, but the market reaction is more interesting than the headline, Alon Shvartsman, founder of Bitcoin data analytics firm Newhedge, told Investing.com.
U.S. spot Bitcoin ETFs have now seen six consecutive weeks of net outflows, with roughly $5.94 billion leaving the products over that period. But the pace of selling has cooled sharply, from about $1.72 billion in the first week of June to roughly $227 million last week, he said.
If this were the start of a deeper institutional unwind, you would expect accelerating outflows and a much weaker spot market. Instead, Bitcoin is still holding around the $64,000 to $65,000 range, Shvartsman added.
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