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In the US, the month of July started bustling in cryptocurrencies, with applications from traditional investment companies to convert Bitcoin into an exchange-traded fund. Bitcoin has reached a 14-month high, surpassing $31,000.

TURKEY - The month of July started off busy in cryptocurrency. According to CoinMarketCap data, Bitcoin, the most valuable cryptocurrency, saw a 14-month high exceeding 31,000 dollars, influenced by applications from traditional fund management and investment companies like BlackRock and Fidelity in the US to convert Bitcoin into an exchange-traded fund (ETF) on the stock market. CoinGecko data showed that Ethereum also surpassed the threshold of 1,960 dollars, nearing its 2,000-dollar record.

Sevcan Dedeoğlu, the Research Director of the cryptocurrency platform Gate.io in Turkey, shared her assessments on the issue, saying, "The US Securities and Exchange Commission (SEC) rejected BlackRock's first application for a Bitcoin-based exchange-traded fund. However, BlackRock applied again. This situation has fueled the interest of investors."

$334 million cash inflows into crypto assets in two weeks

On the other hand, in a report published by CoinShares on July 3rd, which analyzes weekly cash flows into digital assets and investment tools, it was recorded that the bull market continued and digital assets saw a cash inflow of 125 million dollars in the last week. The cash inflows, which have been increasing for two weeks, reached a total of 334 million dollars.

Sevcan Dedeoğlu, pointing out that this number corresponds to 1% of the digital assets managed in current markets, said, "Cash inflow to cryptocurrencies, especially Bitcoin, has been negative for a few weeks due to the interventions of the SEC towards cryptocurrency exchanges. Analysts from the US-based brokerage Bernstein indicate that they believe there is a strong possibility that a spot Bitcoin ETF application will be approved. Indeed, the SEC currently allows futures-based Bitcoin ETFs and leveraged futures ETFs."

98% of cash inflows went to Bitcoin

In the CoinShares report, it was recorded that Bitcoin was one of the primary focuses of investors; the cash inflow to Bitcoin reached 123 million dollars, which accounted for 98% of the total cash inflow. Sevcan Dedeoğlu, Research Director of Gate.io in Turkey, who pointed out that the data analyzed by the blockchain analytics company CryptoQuant shows that companies on an institutional scale are also turning towards Bitcoin, said, "The interest of institutional investors in Bitcoin is significant in terms of determining investor sentiment and market dynamics. Even the SEC's initial rejection towards BlackRock did not negatively affect corporate companies' faith in and adoption of Bitcoin. Institutional investors seem to have regained their confidence in the opportunities Bitcoin, the first digital asset introduced in 2008, will offer in the long term."

“More active days await us”

Emphasizing that three out of five Wall Street investors in the USA think that the markets have entered a bull run, Sevcan Dedeoğlu concluded her assessments with the following statements: “The anticipated decline in US inflation has moved investor sentiment into a positive zone. The S&P 500 index has begun to show the first signs of a bull market, rising 20% from its lowest level recorded in October. The cryptocurrency markets also send positive signals, influenced by intra-ecosystem and macroeconomic developments. As Gate.io Turkey, which has been bringing together the crypto community from all over the world for more than 10 years and today makes it possible to invest in over 1,700 cryptocurrencies with various instruments, we believe that the coming days will be hectic for all markets.