Bitcoin Grinds Higher on ETF Demand Amid Hawkish Fed

Bitcoin's price has been steadily increasing over the past week, reaching $65,227 by the end of the period. This marks a roughly 3% gain from its value seven days prior and is considered one of the steadiest weekly gains since late July.

The driving force behind this increase appears to be returning demand for Bitcoin ETFs, which tend to be more stable than other forms of investment. In fact, US spot Bitcoin ETFs pulled in about $626 million across three trading sessions, with BlackRock's IBIT accounting for nearly half of that amount and lifting its cumulative net inflows to almost $61 billion.

The Federal Reserve is still leaning towards hiking interest rates, despite softening data that could suggest a more patient approach. The July FOMC meeting held the funds rate steady at 3.50-3.75% for a fifth consecutive time, but three members dissented in favor of a 25-basis-point increase.

Bitcoin's ratio to S&P 500 E-mini futures remains below its reference floor of around 9.0, indicating that it still lags behind equity-adjusted risk despite the recent bounce. Ethereum spot ETFs are also building towards their fifth consecutive week of net inflows, with roughly $195 million added through Thursday and BlackRock's ETHA leading the way.