Bitcoin (BTC) is currently reported at around 118,300 USD in the Asian afternoon session today (21), temporarily rebounding from the early morning fall. Profit-taking and funds shifting to alts may cause Bitcoin to lag behind the Crypto Assets market. Notably, DOGE surged 13.03%, while Ethereum (ETH) continues to challenge the ascent towards 4,000 USD.
However, if the upcoming working group report suggests increasing the government’s existing Bitcoin holdings, the report may revive BTC demand.
At the same time, the development of legislation in the United States, the liquidity trends of Bitcoin spot ETFs, and broader institutional demand remain crucial for the price outlook of BTC.
The US Bitcoin Spot ETF market continues to face risks of inflows
On July 18, the U.S. Bitcoin spot ETF market saw continuous inflows for 12 trading days, with a net inflow amounting to $496.8 million, bringing last week’s total inflow to $2.386 billion. BlackRock’s iShares Bitcoin Spot ETF (IBIT) dominated with a weekly net inflow of $2.569 billion. Notably, the last time IBIT experienced a net outflow was on June 6.
Bitcoin Price Analysis: Focus on the CLARITY Act, Working Group Report, and Spot ETF Capital Flows
FXEmpire analyst Bob Mason stated that the recent price outlook for Bitcoin depends on several key factors. These factors include the progress of the CLARITY Act in Congress, news related to strategic reserve assets, and the liquidity trends of spot ETFs. Possible scenarios:
Bearish scenario: Legislative barriers, BTC hoarding silence, strong signals from the Federal Reserve, and ETF capital outflows. The combined effect of these factors could push BTC down to $115,000 and may reach the 50-day exponential moving average (EMA).
Bullish Scenario: The “CLARITY Act” is making progress, the U.S. government supports increasing BTC holdings, the Federal Reserve has issued dovish statements, and ETF funds are flowing in. Under these circumstances, the price of BTC is expected to break through the historical high of 122,057 USD.
(Source: Trading View)
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
