The recent inflow streak for U.S. Spot Bitcoin (BTC) ETFs came to a swift end last week after experiencing significant outflows. After attracting over $9.6 billion in inflows over the previous six weeks, the outflow of $157 million has raised questions about the future of BTC prices, which recently retreated from above $110,000.
The downturn is attributed partly to trade tensions highlighted by former President Trump, who alleged that China had violated a preliminary trade arrangement, prompting the U.S. to increase tariffs on Chinese imports. This created uncertainty among investors, leading to a shift in market sentiment. Notably, Ark 21Shares and Fidelity funds saw the most significant outflows.
James Butterfill, CoinShares’ Head of Research, noted, “The week began with strong inflows for Bitcoin but reversed mid-week after the New York Court’s ruling on tariffs, resulting in minor outflows of about $8 million.” Market analysts, including the team at QCP Capital, predict that ongoing tariff discussions will dominate the macroeconomic narrative, potentially keeping price movement restrained in a $100k-$110k range. The trading firm emphasized the need for traders to monitor potential profit-taking, which could significantly impact any rally going forward.
According to Glassnode, the current market is in a state where new demand is strong, but increased profit-taking pressures loom. If demand remains consistent, BTC may hold its ground; however, the lack of upward momentum could lead to short-term consolidation, warranting close observation of market signals.
The downturn is attributed partly to trade tensions highlighted by former President Trump, who alleged that China had violated a preliminary trade arrangement, prompting the U.S. to increase tariffs on Chinese imports. This created uncertainty among investors, leading to a shift in market sentiment. Notably, Ark 21Shares and Fidelity funds saw the most significant outflows.
James Butterfill, CoinShares’ Head of Research, noted, “The week began with strong inflows for Bitcoin but reversed mid-week after the New York Court’s ruling on tariffs, resulting in minor outflows of about $8 million.” Market analysts, including the team at QCP Capital, predict that ongoing tariff discussions will dominate the macroeconomic narrative, potentially keeping price movement restrained in a $100k-$110k range. The trading firm emphasized the need for traders to monitor potential profit-taking, which could significantly impact any rally going forward.
According to Glassnode, the current market is in a state where new demand is strong, but increased profit-taking pressures loom. If demand remains consistent, BTC may hold its ground; however, the lack of upward momentum could lead to short-term consolidation, warranting close observation of market signals.
