Bitcoin ETFs Suffer Heavy Outflows as Fed Rate Concerns Trump Market Momentum

Bitcoin's recent recovery was dealt a blow as several US-listed Bitcoin exchange-traded funds (ETFs) experienced significant outflows last week. The ETFs in the spot market saw more than $465 million of outflows on July 23 and July 24, ending a seven-session inflow streak. This sudden reversal underscores the fragility of Bitcoin's recent momentum.

The concerns that led to this shift in investor sentiment are centered around potential interest rate hikes by the US Federal Reserve. The Clarity Act, a long-awaited bill aimed at shaping the US cryptocurrency market structure, has also lost steam amidst these Fed rate concerns.