Bitcoin ETFs in the world powerhouse, the United States, closed the second week of July with increased demand.

They raised $310 million on Friday alone, marking their largest daily inflow in over a month. Bitcoin ETFs have not seen such high demand since June 6.

The increase in demand comes after the economic powerhouse published a lower-than-expected inflation rate on Thursday (3% instead of 3.1%). This brings it closer to the Federal Reserve's (Fed) 2% target for setting an interest rate cut this year, which is favourable for assets considered risky and may have motivated the market.

With this performance, the ETFs have recorded six consecutive days of capital inflows, after two days of outflows, as shown in the chart. Such behavior began with the momentary drop in the price of bitcoin below the lateral zone that it maintained for four months. Daily capital inflows and outflows into US Bitcoin ETFs since launch. Source: Sosovalue.

ETFs thus helped Bitcoin recover to around $58,000, returning to trading within the sideways zone it had been trading in for months.

Institutional investors see bitcoin's fall as an opportunity

With the increase in demand for ETFs, it is clear that traditional and institutional investors who turn to these instruments have considered the general selling pressure of the market as a buying opportunity.

This scenario occurs while market sentiment remains mostly in a state of fear so far in July, something that has been influenced mainly by two factors. These are the sales of the 50,000 BTC seized by the German government and the reimbursement of the bankrupt exchange Mt. Gox to creditors after 10 years.