What to know:
- BTC holds near $65,000 as $465.26 million in Bitcoin ETF outflows tests key market support.
- U.S. spot Bitcoin ETFs record a third positive week despite $465M in late withdrawals.
- Bitcoin must clear $67,000 to target $70,000 as Fed risks threaten a new $58,000 retest.
Bitcoin ETF outflows failed to push BTC below key support on Monday as the cryptocurrency traded near $65,000. Bitcoin gained about 0.13% despite $465.26 million leaving U.S. spot funds across July 23 and 24.
The withdrawals ended seven consecutive sessions of inflows. According to SoSoValue data, funds lost $225.2 million on Thursday and $240.1 million on Friday. BlackRock’s IBIT accounted for almost $415 million of the two-day total.
Why Bitcoin ETF Flows Matter Near $65,000
Yet, the spot offerings from the U.S. attracted $33.79 million for the period ending on July 24. This was their third consecutive positive week, earning them $197 million and $75.67 million in the preceding weeks.
Also Read: Ethereum Price Breaks Downtrend Structure: Analysts Eye $2,200–$2,400 Next
According to a report, it appears that the last-minute withdrawals reduced demand but did not change the trajectory of recovery in the month. July has been termed as a period of fixing after the massive sell-offs recorded in May and June by the BRN analysts.
Ivan Lim, senior derivatives trader at FalconX, attributed the reversal of the Bitcoin ETF to two factors. There were no further developments regarding the passing of the CLARITY Act. Additionally, there were rising expectations of an increase in interest rates in the U.S.
Interest-rate concerns intensified as oil-driven inflation fears pushed Treasury yields higher. Reuter reported that traders more than doubled the implied chance of a Federal Reserve rate increase at its next meeting to about one in three.
The United States and Iran extended a pause in retaliatory strikes, easing fears of deeper disruption to regional energy supplies. Bitcoin recovered alongside other risk assets following the development.
Bitcoin has rebounded from its July low near $58,000. The recovery placed the $64,000 to $65,000 range back in focus as immediate support. Monday’s advance tested resistance between $66,000 and $67,000.
The cryptocurrency had climbed above $66,500 earlier in the week before retreating below $64,000. Profit-taking and weakness in technology shares restricted the advance. The latest rebound has not produced a confirmed breakout.
An earlier Bitcoin ETF inflow of $221.7 million ended a 10-day withdrawal streak worth $2.73 billion. The single positive session improved short-term flow data. It did not erase the wider losses recorded during the preceding selloff.
Bitcoin Faces Two Price Scenarios
Above $67,000 would give a chance for the $68,000-$70,000 region to be tested. It would require a higher volume and constant inflows from funds. Progress on regulatory issues and loosening by the Fed will also help with risk appetite.
Otherwise, Bitcoin might consolidate between $64,000 and $67,000 for a few upcoming trading sessions until there are clear signals regarding the monetary policy. The price above $65,000 guarantees the current rally. Price consolidation itself will not confirm a further upward move.
If the outflows from Bitcoin ETFs per day exceed $200M and the Fed becomes more restrictive, then there will be a downward momentum, and the retest of $64,000 will be inevitable, which opens the July low at $58,000.
Also Read: Bitcoin Price Slides Toward $70K as Crypto Market Sees Heavy Liquidations
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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