The weekly inflow of Bitcoin ETF into the US experienced a significant drop last week as hopes of a Fed rate reduction and as an appetite for Trump’s newly passed budget bill investors.
According to SoSovalue data, the 12-spot Bitcoin ETF recorded $769.6 million last week. These investment products have fallen 65% from the previous week when they were portrayed at $2.22 billion.
The week began with a net inflow of $1214 million on Monday, followed by a massive $342.25 million on Tuesday. Momentum rebounded mid-week, with $447.78 million on Wednesday and $601.94 million on Thursday, the highest daily inflow since May. Markets remained closed on Friday, in compliance with the US Independence Day holiday.
Among publishers, BlackRock’s IBIT won a weekly inflow of $336.8 million, with Fidelity’s FBTC leading by $248.4 million and ARK 21Shares’ ARKB led by $160 million.
Minor inflows into other funds, including Bitwise’s BITB, Invesco’s BTCO, Franklin Templeton’s EZBC, Valkyrie’s BRRR, and Vaneck’s Hodl, as well as Grayscale’s new BTC fund, added an additional $109.9 million inflows. These were partially offset by a net flow of $84.9 million from Grayscale’s legacy GBTC.
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The sharp decline in inflows is attributed to profitable activity as Bitcoin approaches an all-time high at nearly $111,960. Investors are likely trapped in profit ahead of holiday weekends, limiting directional convictions and reducing the short-term flow to crypto investment vehicles.
The broader macroeconomic development also placed emphasis on emotions. The US employment report in June was stronger than expected, with non-farm salaries rising 147,000, with a consensus estimate of around 110,000.
Investors have begun re-adjusting their exposure to assets such as Bitcoin as the report weakened hopes for interest rate cuts in July.
At the same time, market sentiment was affected by the passage of one big beautiful bill from Trump, the comprehensive tax and spending package that cleared the Senate on July 1.
The bill included fiscal reforms, but failed to include crypto-related tax provisions proposed by lawmakers related to crypto. This disappointing segment of the crypto industry, which wanted regulatory clarity and tax relief.
Following the Senate vote, Bitcoin fell briefly to $105,000 on July 2, with investors diluting the bill’s impact on the crypto industry. However, a day later, assets recovered quickly, exceeding $110,000, after President Trump announced a new trade agreement with key ASEAN partners and restored investor confidence.
As of press time, Bitcoin (BTC) was trading at $109,000, with little change that day, just 2.5% below its all-time high.
Despite lingering concerns about US tariffs, analysts remain optimistic about Bitcoin’s medium-term outlook.
Standard Chartered recently reaffirmed Bitcoin’s third quarter goal of $135,000, and repeated its year-end forecast of $200,000, citing ongoing institutional demand and constrained exchange supply.
Other analysts, including Bernstein and Bitmex’s Arthur Hayes, have set even more aggressive targets between $200,000 and $250,000 at the end of the year, subject to ETF inflows and global liquidity conditions.
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