Bitcoin near $63,400 as ETF inflows outpace issuance

Bitcoin traded near $63,400 on Aug. 11 after $854 million of weekly inflows into spot bitcoin ETFs purchased an estimated 13,300 BTC, more than four times the roughly 3,150 BTC created by the network over the same period. A corporate sale of 1,690 BTC to fund a repurchase of preferred shares added selling pressure, and volatile moves triggered about $39 million in liquidations.

The price briefly rose above $64,400 during a morning rally, then slid more than $1,000 over the next three hours to an intraday low near $63,394 before settling around $63,400 in the afternoon, down about 0.7% over 24 hours.

Margin liquidations over the 24-hour period totaled about $39 million, with long positions accounting for roughly $34.4 million and short positions for about $5 million, according to market data. Traders using leverage on bets for higher prices absorbed most of the losses as price swings wiped out margin cushions.

ETF inflows were led by heavy accumulation in major institutional products, including funds from BlackRock and Fidelity. Analysts estimate the $854 million in weekly inflows equated to purchases of about 13,300 bitcoins, versus miner rewards of roughly 3,150 BTC over the same span.

Market researchers pointed to a shift from late June, when ETFs collectively shed nearly 65,800 BTC, to recent inflows as a notable change in spot demand. Those researchers also highlighted that about 1.79 million bitcoins sit on-chain with an average cost basis between $62,000 and $65,000, representing potential overhead supply at current price levels.

Other influences on price included continued corporate selling and relatively high long-term U.S. Treasury yields. Trading remained range-bound, with short-term rallies met by profit-taking and corporate balance-sheet sales. Spot ETF purchases have absorbed a meaningful share of available supply recently, while on-chain concentration and intermittent corporate disposals continued to affect price action.