US-listed spot-Bitcoin exchange-traded funds recorded a second consecutive week of net inflows, a notable shift after nearly two months of persistent withdrawals. The 13 funds brought in a combined $75.7 million last week, following net inflows of $197.4 million in the prior week.

The rebound came despite a sharp one-day withdrawal of $424.7 million early in the week, when renewed military clashes between the US and Iran rattled markets. Flows later recovered and ended the week in positive territory.

ETF flows turn positive again

The latest weekly result marked a second straight improvement for US spot-Bitcoin ETFs after eight consecutive weeks of net outflows. Because these products represent a large and broad pool of investors, their direction is widely watched as a measure of sentiment toward Bitcoin and the wider crypto market.

Richard Galvin, chairman of DACM, said the pattern supports the view that the market is confirming a bottom. The significance, in his view, comes not only from the return to inflows but from the fact that the shift has now held for two weeks in a row.

Market stress did not prevent a weekly recovery

The week was not a smooth one for fund flows. Early in the period, the ETFs posted a combined one-day outflow of $424.7 million after military clashes between the US and Iran resumed.

Even so, money later returned to the funds, allowing the group to finish the week with a net gain. That reversal suggested that, at least for now, demand was strong enough to absorb a bout of geopolitical risk without extending the broader outflow streak.

Bitcoin price holds above a closely watched level

Alongside the change in ETF flows, Bitcoin has moved back above its 200-week moving average, a technical level cited at about $63,300. That threshold is often treated as a line between longer-term bearish and bullish market conditions.

In recent weeks, however, Bitcoin has remained range-bound, trading between roughly $60,000 and $65,000. The market has been navigating macroeconomic uncertainty at the same time as investors weigh geopolitical risks and the outlook for interest rates.

Macro and policy factors remain in focus

The Middle East conflict is still seen as a possible source of added inflation and pressure on interest rates. In that environment, the possibility of Federal Reserve rate hikes could slow a wider return of institutional capital to crypto markets.

Another potential catalyst identified in the report is US legislation. Bitcoin could receive support if Congress passes the Clarity Act before the August recess, though that remains a possibility rather than a confirmed outcome.

Recent selling pressure still lingers

Despite the back-to-back ETF inflow weeks, Bitcoin remains about 10% lower than it was in early June. Sentiment was also dented after Strategy disclosed on July 6 that it had sold an additional $216 million worth of Bitcoin to fund dividend payments and other needs, its first partial sale since 2022.

The report noted that this latest sale did not trigger a broader wave of market selling. For now, the next confirmed signal for investors is whether ETF inflows can continue for a third week and whether Bitcoin can stay above the 200-week moving average while macro and geopolitical risks persist.

Source: en.bloomingbit.io