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Has Bitcoin Hit Bottom? ETF Inflows Suggest Investors Think So

Spot Bitcoin funds pulled in fresh cash for a second straight week, hinting that the recent sell-off may finally be running out of steam.

Money is flowing back into Bitcoin ETFs after nearly two months of steady outflows. It’s a small shift, but one traders are watching closely.

Key Details

The 13 US spot Bitcoin ETFs pulled in $75.7 million last week, on top of $197.4 million the week before. That’s a real turnaround, especially considering investors yanked $424.7 million out of these same funds just days earlier, right after fresh US-Iran military tensions flared up.

Market Reaction

Bitcoin climbed back above its 200-week moving average near $63,300, a level many see as the line between a bear and bull market. Prices briefly touched $65,000 in Asian trading, even as new US strikes on Iran hit headlines. Bitcoin is still down about 10% since early June, when Strategy Inc. sold part of its holdings for the first time since 2022. The company followed up with a much larger $216 million sale on July 6.

Why It Matters

DACM’s Richard Galvin called the two-week inflow streak a possible sign of bottoming, noting ETF flows have become one of the best gauges of overall sentiment toward Bitcoin. Ericsenz Capital’s Damien Loh pointed to a different pressure point: if the Fed leans toward raising rates, institutional money may stay cautious a while longer.

What to Watch

Loh flagged the Clarity Act, a pending US crypto market-structure bill, as a potential trigger for the next leg up if it passes before Congress breaks in August.

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Source: Yahoo Finance

 

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