ETF Inflows Surge, But Bullish Outlook Remains Elusive for Bitcoin

Bitcoin ETFs pulled in $854 million last week, their best haul since April. This influx of funds is seen as a positive sign, but Wintermute's over-the-counter desk is not yet turning bullish.

The catalyst for the rally was a single jobs print, which showed U.S. payrolls fell 23,000 in July against forecasts of plus 80,000. This knocked September Fed rate hike odds from 55% to 40%, sending risk assets higher across the board.

Despite the strong inflows into ETFs, Bitcoin underperformed the S&P 500 for the week. Wintermute notes that this gap tells them the ETF buying is being met by supply somewhere in the market.

The desk wants to see the ETF bid hold through the end of summer before changing its view. With a hot CPI print on Wednesday capable of pushing September hike odds back above 50%, it's too early to get bullish, according to Wintermute.