The Spot Bitcoin ETF saw its largest inflows in five weeks on July 8.
The cryptocurrency market continued to rise on Tuesday morning, with the overall crypto market capitalization increasing by 1.7% over the past 24 hours.
Bitcoin (BTC) is up 2% over the same period, last trading at $57,200, while Ethereum (ETH) is up 2.2% to trade at $3,050. Polkadot (DOT) is up 2.5% for the day, trading above $6.10, while Solana (SOL) has seen its recent momentum slow at $139.5 after recovering 1.7%.
Bittensor (TAO), Celestia (TIA), and Sei (SEIac) were the best-performing cryptocurrencies in the top 100, posting daily gains of 14.2%, 13.9%, and 10.8%, respectively. Notcoin (NOT) recorded the biggest losses, dropping just 3%, followed by Avalanche (AVAX) at 1.9% and Near Protocol (NEAR) at 1.4%.
Modular Blockchain and Solana Meme Token recorded gains of 20.5% and 12%, respectively, in the 24-hour period, making them one of the strongest segments of the market.
After digital assets suffered heavy losses over the weekend, cryptocurrencies have made a small recovery, with only three of the top 100 sectors outside of stablecoins posting gains over the past seven days, with modular blockchain posting a 19% increase.
According to data from CoinGlass, 34,142 traders were liquidated, causing a total loss of $99.7 million.
Investors “buy low”
The crypto market rally coincides with the biggest daily inflows into a Bitcoin spot ETF in five weeks.
On July 8, Bitcoin ETFs recorded net inflows of $294.8 million, with BlackRock's IBIT leading the way with $187.2 million. This was the highest single-day inflow since June 6, according to data from Farside.
Popular crypto market analyst Willy Woo argued that ETF investors are seizing the bargain-buying opportunity created by last weekend's bearish momentum.
“ETFs are buying on the dip,” he tweeted. “A bit early to tell, but suggests an accumulation pattern. Expect price to level out in a compressed low volatility zone as BTC leaves exchanges.”
Stock prices soar
U.S. stock futures also posted modest gains on Tuesday, with the Dow Jones Industrial Average futures up 56 points, or 0.1%, while S&P 500 futures and Nasdaq 100 futures rose 0.2% and 0.4%, respectively.
This could be good news for Bitcoin as the U.S. labor market is showing signs of weakening, which could prompt the Federal Reserve to cut interest rates and inject a large amount of liquidity into the market.
Last Friday's U.S. employment report showed job growth was weaker than expected, suggesting the central bank may cut interest rates to stave off a recession. The Bureau of Labor Statistics reported that nonfarm payrolls rose by 206,000 in June, driven mostly by government hiring.
According to CME FedWatch data, 75% of market participants expect the Fed to cut rates twice this year.
Federal Reserve Chairman Jerome Powell is scheduled to testify before Congress on Wednesday to provide his semi-annual update on monetary policy.
Meanwhile, several key inflation measures, including the Consumer Price Index and Producer Price Index for June, are due to be released later this week.
