Bitcoin is showing renewed strength, buoyed by a combination of rising spot ETF demand and a significant shift in trader positioning. According to Bloomberg Senior ETF Analyst Eric Balchunas, Bitcoin has gained approximately 8% since the 250th anniversary of U.S. independence (July 4, 2026), outperforming many other assets in that span.
The rally coincided with a marked turnaround in spot Bitcoin ETF flows. Data cited by Balchunas shows net inflows of around $750 million over the past week, snapping a period of tepid interest. This positive trend was echoed by on-chain analytics firm Glassnode, which noted in a recent tweet that “hedges are off, shorts are closed, and ETF flows for Bitcoin have flipped positive.”
Despite the upbeat signals, Balchunas urged caution, saying it is “too early to say whether the current movement has turned into a permanent uptrend.” He highlighted that one of the most persistent pressures has been selling by long-term holders, a dynamic that has weighed on the price for roughly nine months. “If these investors stopped selling, Bitcoin could experience a stronger recovery,” he added.
Glassnode’s report also pointed to a critical technical level: the Short-Term Holder Cost Basis at $69,000. A decisive move above this threshold could attract further buying interest, while a rejection risks triggering renewed selling pressure. The closing of short positions and the return of ETF inflows suggest that market sentiment is turning cautiously optimistic, but the battle at the $69K level will likely dictate the next major move.
