Bitcoin ETF Outflows Signal Market Jitters Over Fed Rate Hikes

Bitcoin's recent recovery has hit a speed bump due to concerns that the US Federal Reserve could raise interest rates, leading to outflows from Bitcoin exchange-traded funds (ETFs).

Last week, more than $465 million flowed out of US-listed Bitcoin ETFs on July 23 and 24, ending a seven-session streak of inflows. The sudden departure from the spot market highlights the fragility of Bitcoin's recent momentum.

Legislative developments in the US, specifically the Clarity Act, are also contributing to market uncertainty. Democrats are pushing for tougher ethics provisions to prevent President Donald Trump from profiting off the crypto industry he regulates.

Despite these setbacks, some analysts remain optimistic about Bitcoin's prospects. Ivan Lim, a senior derivatives trader at FalconX, said that macro-driven uncertainty will persist but expects the outlook on Bitcoin to be structurally bullish.