ETF Inflows Support Bitcoin Rally, but Professional Caution Persists
Bitcoin (BTC) has seen a surge in price, reaching over $66,800 this week, its strongest level in more than a month. However, the rally is fragile and raises questions about whether it's a bear-market rebound or a sign of stronger growth.
The influx of money into the market comes from consecutive ETF inflows, which have reversed the trend of outflows seen since May and June. According to Santiment, roughly $981.2 million in net inflows returned across 7 trading days from July 14, similar to a previous streak ahead of Bitcoin's October 2025 rally.
Despite this influx of capital, professional traders are still cautious. The Coinbase Premium Index has remained negative for over 900 cumulative hours, indicating weaker demand or stronger selling pressure on Coinbase compared to Binance. Analyst Darkfost ties this caution to sticky inflation, rising oil prices, and a less transparent Fed under its new chairman.
This divergence suggests that ETF inflows are supporting prices but have yet to gain confirmation from broader spot market demand, leaving the rally vulnerable if ETF inflows begin to fade.