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- U.S.-traded bitcoin ETFs took in $221.7 million on Thursday, their largest daily inflow in about two months, ending a 10-day streak of outflows.
- The chain withdrew about $2.7 billion in funds, and capped June, the worst month ever for products, with outflows of about $4.5 billion.
- Fidelity’s FBTC led with $166 million, while BlackRock’s IBIT bucked the trend with $40 million in outflows.
US-based bitcoin ETFs returned to net inflows on Thursday, snapping a 10-day losing streak, as a weak jobs report and weak signals from the Federal Reserve eased pressure on risk assets.
The funds withdrew $221.7 million, their largest daily amount in about two months, according to data from SoSoValue. Fidelity’s FBTC led with $166 million, followed by ARKB with $91.8 million and VanEck’s HODL with $4.4 million. BlackRock’s IBIT was the exception, losing $40.4 million to extend a losing streak dating back to mid-June.
The inflows ended a period that drained about $2.7 billion of funds and ended a miserable June. Worst month ever For US spot bitcoin ETFs, which have bled about $4.5 billion. Bitcoin, which has fallen to… Lowest level in 21 months Below $58,000 earlier in the week, it has since risen to over $61,000 per month. CoinGecko data.
Dilution rate concerns
The catalyst was a softer reading of the US economy and a shift in the Fed’s tone. government in June Jobs report Nonfarm payrolls showed an addition of only 57,000, well below expectations of 110,000, while Fed Chairman Kevin Warsh said He pointed out Inflation risks eased, cooling bets on further rate hikes and dragging the dollar back.
Andriy Fozan Adzima, head of research at the Bitrue Research Institute, said Warsh’s comments “improved overall market sentiment,” leading to increased flows into Bitcoin ETFs and stimulating Bitcoin’s recovery of more than $61,000. Decryption. “The same positive shift is now supporting renewed inflows into Ethereum ETFs as well,” Adziima added, with the products recording inflows of $14.9 million on Wednesday and $29.1 million on Thursday, per SoSoValue.
Tim Sun, senior researcher at HashKey, linked the shift to a “marginal shift in interest rate expectations.” He said the continued outflows reflected “the market pricing in further interest rate hikes,” lifting the dollar and real yields against non-yielding bitcoin, while weak payrolls “weaken market expectations of further interest rate hikes.”
There is no turning back yet
Sun warned that the rebound is “only a temporary rebound after the easing of interest rate pressure” with no trend reversal confirmed yet. He added that Bitcoin’s path remains “constrained by changes in the US dollar, real interest rates and Federal Reserve policies.”
Steven Wendke, director of strategy and revenue at Algoz Technologies, saw bargain hunters buying sold-off assets after a flight to safety hit even gold, with investors crowding into Treasuries. He added that the decline in five-year bond yields and oil prices indicates that inflation is back under control, while those investors “who are looking for a bottom in Bitcoin or are aware of oversold assets are starting to hunt the bottom.” Bitcoin “may bounce around the bottom for a few more weeks, but the direction of travel is clear,” he said.
In the prediction market Myraid, owned by DecryptionParent company Dastan, users remain bearish on this trend. They set chances What’s next for Bitcoin? To reach $55,000 instead of $84,000, an increase of 74%, which is the same as it was about a week ago.
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