Bitcoin has regained footing above $57,000 following a significant dip to $55,000. This resurgence came after a German government entity recuperated over $200 million worth of the cryptocurrency from various exchanges late in the U.S. trading day, bolstering market sentiment. As of the European morning, BTC hovered around $57,400, marking a 1% uptick in the past 24 hours. This rebound occurred after the German Federal Criminal Police Office (BKA) sent over $900 million to various addresses, unnerving traders. However, Arkham data revealed that the assets were ultimately refunded from Kraken, Coinbase, and Bitstamp, indicating they did not impact the market.

Spot Bitcoin ETFs experienced nearly $300 million in net inflows on Monday, the highest since early June when Bitcoin was trading above $70,000. BlackRock’s IBIT spearheaded the inflows with nearly $180 million, followed by Fidelity’s FBTC. Even Grayscale’s GBTC, typically known for outflows, saw over $25 million in purchases. CoinShares noted in a report that some investors might view the price drop as a buying opportunity. Historical trends suggest that July is expected to be a bullish month for the crypto market, typically showing a medium return of 9%.

Data from Coinwarz indicated that Bitcoin’s mining difficulty plummeted from 83.6 TH/s to 79.50 TH/s on June 5, a level not seen since March, just a month before the halving. This significant drop in difficulty is one of the largest since the collapse of crypto exchange FTX, which caused Bitcoin prices to tumble over 10% in a week, according to CryptoQuant. The downward adjustment signifies a proportional decrease in the network’s hashing power, potentially benefiting smaller miners and making operations profitable for those previously unable to sustain costs. Miners, who were a significant source of Bitcoin selling pressure in June, offloaded over $1 billion worth of BTC over two weeks as prices fluctuated between $65,000 and $70,000.