Bitcoin Price Drops 2% Over Holiday Weekend Despite 10% Monthly Gain

Bitcoin's price movement took a pause over the Independence Day weekend, with the cryptocurrency trading at $108,000 on July 5, down from the week's high of $110,000. Despite this temporary lull, Bitcoin's price remains 10% above the lowest point it reached this month. The recent recovery in Bitcoin's price has been supported by strong inflows into spot Bitcoin ETFs, which saw a cumulative inflow of $769 million this week. This figure, while significant, represents a decline from the previous week's inflow of $2.2 billion. The reduction can be attributed to the shortened trading week due to the Independence Day holiday in the United States, which resulted in only four trading days.

The cumulative inflows into these ETFs have now reached $49 billion, indicating that they are on track to surpass the $50 billion mark in the near future. BlackRock’s iShares Bitcoin Trust, with the ticker IBIT, has been a standout performer, accumulating $52.6 billion in inflows. IBIT's asset base now exceeds $76.5 billion, making it one of the largest ETFs in the United States. Its rapid growth has propelled it to the eighth position among all BlackRock ETFs, surpassing other prominent funds such as the iShares Core S&P Total US Stock Market ETF and the iShares Russell 2000 ETF. Analysts predict that IBIT is likely to reach the $80 billion milestone soon, continuing its trajectory as the fastest-growing ETF ever. This growth is narrowing the gap with the SPDR Gold Trust, which has $101 billion in assets and was established in 2004.

The demand for Bitcoin continues to rise, with an increasing number of corporations establishing Bitcoin treasuries. Strategy leads this trend, holding 597,325 coins, and the total number of coins held by these companies has reached 848,902. This trend is evident as 51 companies have already added Bitcoin to their treasuries, indicating a clear uptrend in corporate adoption. The supply of Bitcoin on exchanges has also decreased, dropping to 1.2 million from a year-to-date high of over 1.5 million. This reduction in supply suggests that more Bitcoin is being held off exchanges, potentially by long-term investors or institutional buyers.

Recent developments include shareholders of Vanadi Coffee approving a strategy to acquire more Bitcoin for its balance sheet, aiming to become the largest Spanish company with a Bitcoin treasury. Similarly, the Swedish gaming and web3 company Fragbite Group is establishing a Bitcoin treasury to future-proof its balance sheet and has appointed a dedicated director to oversee its Treasury operations. These moves highlight the growing interest in Bitcoin as a store of value and a strategic asset for corporations.

The technical analysis of Bitcoin's price chart suggests a potential rebound. The daily chart indicates that Bitcoin has remained above the 200-day Weighted Moving Average and has formed two unique patterns that often lead to further gains. These patterns include a cup-and-handle formation and a bullish flag pattern, both of which suggest that Bitcoin could surge to a high of $144,000 in the coming months. However, a drop below the lower side of the flag section would invalidate this bullish outlook.