Bitcoin ETF Outflows Snap Inflow Streak Amid Fed Rate Hike Fears
Bitcoin's recent rally has been disrupted by concerns over Federal Reserve rate hikes and the uncertain fate of the Clarity Act, a proposed US cryptocurrency market-structure bill. Heavy outflows from US-listed Bitcoin exchange-traded funds (ETFs) on July 23 and 24 snapped a seven-session inflow streak, with more than $465 million withdrawn from these funds.
The ETFs in the spot market saw $33.8 million of inflows for the full week, marking a third consecutive week of inflows following eight weeks of redemptions totaling $8.3 billion. This indicates that institutional investors have returned selectively after a prolonged period of redemptions but with weak conviction.
Rachael Lucas, an analyst at BTC Markets, noted that 'the next couple of sessions are the tell.' A second week of outflows would be more serious and suggest a deeper market concern. Ivan Lim, a senior derivatives trader at FalconX, stated, 'We expect macro-driven uncertainty to persist this week, but our outlook on Bitcoin remains structurally bullish.'