Data from SoSoValue shows that spot Bitcoin ETFs listed in the United States have received approximately $273 million in new investor funds in the past two weeks. This is significant because it ends an eight-week period in which investors continued to withdraw funds from Bitcoin ETFs. During these eight weeks, investors withdrew more than $8 billion from Bitcoin ETFs.
Bitcoin ETFs received around $197.4 million in first week of recovery new investmentaccording to SoSoValue data. In the second week, those funds attracted an additional $75.7 million, bringing the two-week total to about $273 million. While investors added money during the week, they also withdrew $424.7 million in one day amid renewed military tensions between the United States and Iran.
Bitcoin ETF inflows
The ETF ended the week with positive inflows despite massive single-day withdrawals. Experts say this could mean investor confidence in Bitcoin is slowly returning. Richard Galvin, executive chairman of cryptocurrency investment firm DACM, said the inflow could be a sign that Bitcoin prices are bottoming out, Bloomberg reported. Galvin said Bitcoin ETFs have become a good way to understand overall investor sentiment because many large investors use them. He added that two consecutive weeks of inflows after eight weeks of withdrawals is a positive sign for the cryptocurrency market.
Bitcoin ETFs allow people to invest in Bitcoin without directly purchasing or storing the cryptocurrency. As a result, ETF inflows are often seen as a sign that institutional investors such as investment firms and large funds are returning. Bitcoin. Bitcoin’s price has also become more stable recently, trading mostly between $64,000 and $65,000, according to CoinDesk.
Bitcoin Price Outlook
Bloomberg reports that Bitcoin has also moved back above its 200-week moving average around $63,300. Many traders view the 200-week moving average as an important level that can show whether Bitcoin is in a long-term bullish or bearish trend. Bitcoin has been trading between $60,000 and $65,000 for several weeks amid global economic uncertainty.
Bitcoin briefly climbed above $65,000 during the Asian trading session even after the United States launched a new round of strikes against Iran. Some analysts said this showed that Bitcoin was performing well despite geopolitical tensions. However, experts warn that the US-Iran conflict could exacerbate inflation. Rising inflation could prompt the Federal Reserve to raise interest rates.
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Bloomberg quoted Damien Loh, chief investment officer of Ericsenz Capital, as saying that higher interest rates generally make risky investments such as Bitcoin less attractive. According to Bloomberg, Loh said uncertainty about interest rates may still prevent many large institutional investors from fully returning to Bitcoin. He also said that if Congress passes the proposed Clarification Act in the United States before the August recess, the bill could become a positive trigger for Bitcoin.
US Cryptocurrency Rules
The Clarification Act is a bill that seeks to create clearer rules for the U.S. cryptocurrency market. Loh said Bitcoin has shown strong support even as other risk assets struggle and tensions rise in the Middle East. Bitcoin is still down about 10% since early June.
One reason for the decline is Strategy Inc. selling some of its Bitcoin holdings, something the company hasn’t done since 2022. Strategy founder Michael Saylor had earlier promised that the company would continue to buy Bitcoin rather than sell it. However, Bloomberg reports that falling Bitcoin prices are making it harder for Strategy to meet its dividend obligations. The company later said it would prefer to sell Bitcoin if needed.
Institutional Bitcoin Demand
On July 6, Strategy revealed that it sold another $216 million worth of Bitcoin, up from the previous $2.5 million. While many cryptocurrency investors are celebrating recent ETF inflows, CoinDesk said the numbers are still small compared to the huge outflows in the previous two months.
CoinDesk noted that the recent inflow of $273 million was only slightly higher than the smallest weekly outflow (about $226.8 million) during the eight-week sell-off. That means it would take two weeks of new buying to recoup about a week of early selling. As a result, some analysts believe it is too early to say that institutional investors have fully returned to Bitcoin.
Cryptocurrency research firm BRN said investors should watch whether ETF inflows remain positive in the coming weeks before calling it a true recovery. Econometrics also says ETF flows CoinDesk said people have become healthier, but positive trends need to continue to confirm the market’s lasting recovery. For now, analysts say the massive sell-off appears to have stopped, but Bitcoin will still need stronger and more consistent investor demand before experts can say the market has fully recovered.
