Bitcoin's ETF Boost Fades as Professional Caution Persists
Bitcoin's recent surge to over $66,800 has sparked questions about whether this is a bear-market rally or a sign of a low. The cryptocurrency briefly touched its strongest level in more than a month before slipping back.
The trend of consecutive ETF inflows has reversed, with approximately $981.2 million in net inflows returning across 7 trading days from July 14, according to Santiment. This influx of capital is supporting prices, but the recovery has yet to gain confirmation from broader spot market demand.
Analyst Darkfost tied professional caution to sticky inflation, rising oil prices, and a less transparent Fed under its new chairman. The Coinbase Premium Index has remained negative for more than 900 cumulative hours, indicating relatively weaker demand or stronger selling pressure on Coinbase compared to Binance.
The debate over what drives Bitcoin's price continues, with some viewing it as a macro asset tied to broader market trends rather than the traditional four-year cycle tied to halving events. Grayscale argued that Bitcoin has matured into a macro asset and could bottom when macro factors turn around.