Bitcoin recovers to $60,870 as Glassnode flags bottoming after record ETF outflows

Glassnode's on-chain metrics show a potential Bitcoin bottom even as spot ETF outflows hit their worst stretch since the products launched in 2024.

Bitcoin rose to $60,870 as of 00:30 UTC, recovering from a year-to-date low of $58,000, even as ETF outflows hit $748 million this week.

On-chain data suggests the selloff may be exhausting itself, with Glassnode's accumulation trend score showing a potential bottoming pattern, the analytics firm said in a July 1 report. The reading comes as demand for Bitcoin remains thin, with investors continuing a selling spree that has now extended into an eighth consecutive week.

Spot Bitcoin ETFs have recorded outflows for eight consecutive weeks, with $4.5 billion exiting in June alone — the worst monthly performance since the products were approved in January 2024, according to SoSoValue data. The sustained redemptions have persisted even as Bitcoin held above $58,000, suggesting sellers may be losing conviction at current prices. Adding to the selling pressure, concerns have emerged that Strategy, the largest corporate holder of Bitcoin, could liquidate some of its holdings.

Bitcoin now faces resistance at $62,000, a level that has capped upside since mid-June, while support sits at $58,000. A break below that floor could open a path toward $55,000, though the Glassnode data suggests accumulation may be underway near current levels.

The divergence between price action and ETF flows mirrors patterns seen in previous cycle bottoms, where retail selling through exchange-traded products coincided with whale accumulation on-chain. In prior instances, such divergences resolved higher once the selling pressure from ETF holders subsided and institutional buyers stepped in to absorb supply.

The next major catalyst for Bitcoin comes July 11, when June US consumer price index data is released. A softer inflation print could revive expectations for Federal Reserve rate cuts, potentially reversing the macro headwinds that have weighed on risk assets through the second quarter. Bitcoin's recovery from $58,000 suggests the market is already pricing in some improvement in the macro outlook, though the sustainability of the move depends on whether ETF outflows begin to reverse.

This article is for informational purposes only and does not constitute investment advice.