Now that the dust has finally settled after Monday’s crypto sell-off, some investors may be wary about sticking with bitcoin. However, it might be too early to give up on cryptocurrency just yet.
It’s not an exaggeration to say that the sell-off had been especially brutal for bitcoin. Recent VettaFi research notes that in this past week, the cryptocurrency’s price dropped to its lowest value in five months.
See More: Cryptocurrencies: Bitcoin Plummets to 5-Month Low
However, it’s important to understand what drivers led to bitcoin’s sell-off in the first place. The turbulence emerged after Friday’s weaker jobs report from the U.S. Department of Labor, which ignited some investor concerns of a possible recession.
With a recession resting on investors’ minds, some began selling off more volatile assets to de-risk their portfolios. While the cryptocurrency had been enjoying a wave of momentum this year, bitcoin ended up getting caught in the sell-off crossfire.
Heading into the weekend with market trepidation could be dangerous at times for bitcoin traders. Unlike more traditional markets, bitcoin trades on the weekends, opening more opportunities for potential sell-offs or buy-ins.
Nonetheless, it’s still too early for bitcoin investors to start panicking. Already, CoinDesk data shows bitcoin’s price nearing the $60,000 mark once again. Even amid turbulence, bitcoin can provide strong results for investors willing to weather some risk.
Advantages of Experience
Take the Invesco Galaxy Bitcoin ETF (BTCO ), for example. Fund flows data from ETF Database shows BTCO earning over $62 million in net flows over the last month, as of Aug. 7, 2024. Notably, ETF Database’s results show that BTCO did not endure any noticeable outflows earlier this week, unlike many of its peers in the market.
Recent data shows how BTCO has been able to deliver robust results, even prior to the bitcoin sell-off. As of July 31, 2024, BTCO’s NAV has risen more than 40% since the fund’s inception in January 2024. However, it’s important to note that this data does not include any changes due to the sell-off in early August.
As an additional benefit, BTCO operates with the distinctive advantage of Invesco’s proven fund management team. The issuer currently has over 220 ETFs listed in the United States, representing more than $531 billion in assets under management.
For more news, information, and analysis, visit the Innovative ETFs Channel.
