The spot Bitcoin ETFs had another good day today on July 9th. Data from Lookonchain revealed that the ETFs recorded nearly $263 million in inflows, with BlackRock and Fidelity contributing towards most of it.
The inflow resulted in the Bitcoin price trading as high as $58,000 at the start of US trading hours, despite the continued sell-offs from the German government.
With all signs pointing towards a potential BTC recovery, large-cap altcoins are also skyrocketing. Meme coins such as Brett and Bonk are up nearly double digits, while Layer-1 tokens such as Sei and Celestia are also showing significant strength.
Even new crypto coins such as Pepe Unchained and Base Dawgz are in high demand and could deliver outsized returns due to their low-cap status.
Is The Bottom In For Bitcoin?
The bullish impact of daily spot BTC ETF inflows cannot be underestimated.
This trend was one of the key factors behind the Bitcoin bull rally in 2024 Q1 that saw the largest cryptocurrency reach a new all-time high pre-halving. The ETFs act as a risk proxy, buying all potential dips and playing a key role in sustaining BTC’s bullish trajectory.
For instance, the German government sold nearly $1 billion worth of BTC over the past 2 days. And yet, the Bitcoin price is up nearly 4% over the past 24 hours, most likely due to the bullish impact of the spot ETFs.
Furthermore, the German government is running out of BTC to sell. It currently holds less than half of the holdings that it had just a week ago.
All eyes are now on Wednesday’s CPI data. A better-than-expected CPI nearly locks in an interest rate cut in September. In fact, Citi – the multinational banking company – now expects 8 interest rate cuts between 2024 and 2025, which would be a mega-bullish scenario for Bitcoin.
Therefore, it appears that $54,000 could have been the local bottom for Bitcoin unless there is additional selling pressure from Mt. Gox or the US government.
The bulls would look to flip the 1-day 200 Simple Moving Average into support, which is currently hovering above $58,000.
Altcoin Bull Rally In August?
There is growing consensus that altcoins will dominate the next leg of this bull cycle. The spot Ethereum ETFs could start trading by mid-July, resulting in the ETH price gaining substantial ground against BTC.
Meanwhile, spot Solana ETFs are also gaining significant buzz, now that Republican Donald Trump has emerged as the favourite to win the US Presidential elections in November.
In such a scenario, Ethereum and Solana meme coins could see significant demand, considering that smart-money traders treat them as beta plays on their respective blockchains.
These New Crypto Coins Could Explode Next
During this year’s first-quarter bull rally, new crypto coins were all the hype. Indeed, several small-scale investors turned into millionaires, simply by being early to a new meme coin.
With an altcoin bull run on the horizon, new cryptocurrencies could see high demand.
For instance, Pepe Unchained has raised nearly $3 million in the first few weeks of its presale. Some experts are even calling it the best alternative to Pepe which could potentially deliver 100x returns.
Pepe Unchained has launched its own Layer-2 blockchain, with the aim of delivering low trading costs, faster transactions and high staking rewards to token holders. Indeed, PEPU stakers can already earn impressive passive income, currently at a reward rate of over 600%.
Once Pepe starts to push towards its all-time high, PEPU could see a strong correlation and deliver outsized returns as well.
Meanwhile, a new Base meme coin – Base Dawgz – could show a strong correlation with Brett, the top meme token on the Base chain. It has already raised nearly $2.5 million during its presale.
Indeed, there is a significant demand for Base meme coins, particularly the dog-themed ones of which there is a shortage on the chain. The largest dog-themed token on Base is Basenji, which has a market capitalization of just $44 million.
Thanks to innovative concepts such as staking rewards and share-to-earn, experts believe that DAWGZ could be the next big token on Base.
