Analysis: Bitcoin’s recent rise has been supported by multiple inflows of capital, with institutions, large whales, and options traders all increasing their positions in tandem

PANews July 22, according to CoinDesk, the Bitcoin and crypto market has recently seen an upward rally. Market reports say the U.S. White House has reached agreement on the ethical provisions related to the CLARITY Act, which is expected to increase the likelihood that the bill advances in Congress, paving the way for institutional investors to further participate in the crypto market. In terms of capital flows, this round of gains has not been driven by a single force. Institutional investors, long-term holders, and derivatives traders have all shown positive signals. In the past 5 trading days, U.S. spot Bitcoin ETFs have cumulatively attracted more than $700 million in net inflows, setting a streak of the longest continuous net inflow since May this year. This trend stands in sharp contrast to the large-scale selloff earlier this summer, when the market faced about $7.5 billion in redemption pressure between mid-May and June.

In addition, major Bitcoin “whales” have continued to increase their holdings over the past two months, while medium-sized wallets have shown selling activity. This divergence could become a “positive signal” for Bitcoin’s mid-term outlook. Meanwhile, activity in the Bitcoin futures and options market has also rebounded. Recently, a trader or trading group made a large purchase of bullish call spread options on Bitcoin, betting that Bitcoin will rise to $72,000 by the end of the month.