The sideways trend has been broken and Bitcoin is on the rise again. Within 24 hours, BTC rose 2 percent to more than USD 71,000. The all-time high of USD 73,737 is now just a few percentage points away. What's next for the cryptocurrency price?

It is safe to say that sentiment has found its way back into the market. This is particularly evident from a look at capital inflows into Bitcoin ETFs. Yesterday, Tuesday, June 4, a total of USD 887 million flowed into the index funds of BlackRock and Fidelity, among others - the second largest amount ever since their inception in January of this year.

The ETF winner of the day is Fidelity's FBTC, the third-largest BTC index fund, which recorded net inflows totaling $378.7 million. According to Dune, Fidelity's ETF already holds a total of about 165,000 Bitcoin. The constant demand for BTC fund products in the traditional financial market is probably the main reason for the digital gold's top performance. Indeed, net capital has been flowing into the ETFs for 16 days in a row now.

With 853,000 BTC with a total value of USD 13 billion, 4.3 percent of the total Bitcoin stock is now on the wallets of ETF managers. It is important to emphasize: Bitcoin ETFs are the most successful index funds in stock market history.

Miners continue to liquidate their BTC

But why did Bitcoin initially go downhill after the halving? The halving of the block grant put pressure on miners. As data from Glassnode shows, miners recently had to liquidate some of their BTC holdings.

The liquidations logically led to some selling pressure in the market - and may have caused the price to fall as a result. The question now is whether the selling will end. If it does, the supply of BTC on the market may tighten again. That would be bullish.

In contrast, André Dragosch of the ETC Group on LinkedIn thinks the liquidation of Bitcoin by miners could continue for some time: