Spot Bitcoin ETFs traded in the US reported net inflows of $221.7 million on Thursday, breaking a 10-day streak of outflows and marking the strongest single-day inflow in nearly two months. Simultaneously, the price of Bitcoin, which had dipped below $58,000 earlier in the week, recovered and climbed back above $61,000.
Outflow streak comes to an end
According to data from SoSoValue, the Fidelity FBTC fund led Thursday’s turnaround, attracting $166 million in inflows. ARKB followed with $91.8 million, while VanEck’s HODL fund saw $4.4 million in fresh investments. In contrast, BlackRock’s IBIT fund experienced $40.4 million in outflows, continuing its weaker trend since mid-June.
The now-concluded 10-day outflow streak saw a total of $2.7 billion withdrawn from US spot Bitcoin ETFs. June has gone down as the weakest month yet for these products, with approximately $4.5 billion in net redemptions recorded over the month.
Andri Fauzan Adziima, head of research at Bitrue Research Institute, noted that “a more dovish tone from the US Federal Reserve has improved overall market sentiment, supporting inflows into Bitcoin ETFs and helping Bitcoin rebound above $61,000.”
Macro data boosts risk appetite
This shift in market momentum was driven in part by weaker US economic data. Nonfarm payrolls in June increased by just 57,000, falling significantly short of the market consensus of around 110,000. The disappointing jobs report reinforced expectations that pressure for further interest rate hikes could ease.
At the same time, softer signals from the Federal Reserve helped ease the pressure on riskier assets. Analysts point out that the decline in the US dollar and changes in real yields temporarily reduced selling pressure on Bitcoin, which does not offer yield.
Spot Ethereum ETFs see inflows too
Adziima further noted that a similar improvement has begun to emerge in spot Ethereum ETFs. According to SoSoValue, spot Ethereum ETFs saw net inflows of $14.9 million on Wednesday and $29.1 million on Thursday.
Tim Sun, senior researcher at HashKey, attributed the recent activity to limited changes in rate expectations. He explained that previous outflows were driven by fears of more rate hikes, while weaker jobs data has now softened those expectations somewhat.
Cautious outlook remains
Despite the recent bounce, market experts remain cautious about declaring a lasting trend reversal. Sun emphasized that the current uptick should be seen as a short-term rebound linked to easing interest rate pressures. He added that the outlook for Bitcoin in the near term is likely to remain tied to the US dollar, real yields, and Federal Reserve policy decisions.
Stephen Wundke, director of strategy and revenue at Algoz Technologies, remarked that the latest move was fueled by investors buying assets previously in oversold territory. Wundke observed that, following a search for safe havens, some investors are now eyeing potential bottom levels. Nonetheless, he assessed that Bitcoin may remain volatile and continue to test lower regions in the coming weeks.
