Bitcoin ETF Outflows Reverse Inflow Streak Amid Macro Jitters

Bitcoin's recent rally appears to be losing steam as US spot Bitcoin ETFs have posted net outflows for two consecutive days, marking a reversal of their seven-day inflow streak. The funds shed $465 million over this period, with BlackRock's IBIT driving most of the selling.

This reversal has been tied to macro jitters, including U.S.-Iran tensions, oil prices above $100, and potential Fed rate hikes. Analysts believe that institutions are making 'tactical, phased allocations near the temporary price bottom,' but lack conviction buying, according to Tim Sun, Senior Researcher at HashKey.

The pullback is not confined to crypto, with US stock funds posting net outflows for a second straight week and bond funds breaking a run of inflows. Zach Pandl, Grayscale's head of research, has argued that Bitcoin's bottom 'may already be in' if the Fed holds off on further rate hikes.

Stephen Wundke, strategy and revenue director at Algoz Technologies, is more optimistic about what follows, expecting oil to stabilize near $80 and ETF inflows, and prices, to climb steadily again as the fighting in the Middle East 'fizzles out'.