Bitcoin ETF Outflows Snap Inflow Streak Amid Fed Rate Hike Concerns
Heavy outflows from US-listed Bitcoin exchange-traded funds late last week underscored the fragility of the token's recent recovery. The ETFs in the spot market saw more than $465 million of outflows on July 23 and July 24, snapping a seven-session inflow streak.
The outflows came as concerns that the US Federal Reserve could raise interest rates overshadowed recent momentum behind the Clarity Act, a long-awaited US cryptocurrency market-structure bill. The original cryptocurrency climbed back above $65,000 in early Asia trading Monday, rising as much as 1.4% alongside other risk assets.
According to Ivan Lim, a senior derivatives trader at FalconX, 'We expect macro-driven uncertainty to persist this week, but our outlook on Bitcoin remains structurally bullish.' He added that the recent Bitcoin ETF outflows and fragile mood are largely a reaction to legislative waiting around the Clarity Act and faster Fed rate hike expectations.