Bitcoin ETF Inflows Meet Resistance from Professional Caution

Bitcoin's price surged to over $66,800 this week, its strongest level in more than a month, before retreating. The brief rally comes as consecutive Exchange-Traded Fund (ETF) inflows have pulled money back into the market after a prolonged period of outflows.

The trend reversed in July, with roughly $981.2 million in net inflows returning across 7 trading days from July 14, according to Santiment. This influx has lifted Bitcoin's price, but analysts remain cautious about the rally's sustainability.

Darkfost, an analyst, attributed the continued caution among professional traders to sticky inflation, rising oil prices, and a less transparent Federal Reserve under its new chairman.

The divergence between spot market demand and ETF inflows has led to a broader debate over what drives Bitcoin's price. Grayscale argued that Bitcoin has matured into a macro asset, which could bottom when macro factors turn around.