Bitcoin ETF Outflows Snag Seven-Session Rally as Fed Hike Concerns Mount

Bitcoin's recent price surge was short-lived as investors pulled more than $465 million from US-listed bitcoin exchange-traded funds (ETFs) on July 23 and 24. This move snapped a seven-session inflow streak, raising concerns about the token's stability.

The outflows came as the US Federal Reserve's potential interest rate hike weighed heavily on investors' minds. The Clarity Act, a long-awaited bill aimed at restructuring the US cryptocurrency market, also failed to provide clarity on its progress.

According to Ivan Lim, a senior derivatives trader at FalconX, 'macro-driven uncertainty will persist this week, but our outlook on bitcoin remains structurally bullish.' Despite the fragile mood and recent outflows, investors have still shown interest in bitcoin ETFs, with $33.8 million of inflows recorded for the full week.

The latest data suggests that institutional investors are taking profits or paring their exposure when market sentiment deteriorates, as highlighted by Rachael Lucas from BTC Markets: 'The next couple of sessions are the tell.' A second week of outflows would be more serious and could indicate a deeper issue with bitcoin's stability.