Bitcoin ETFs Draw In $222M, Snapping 10-Day Losing Streak

U.S. spot Bitcoin ETFs returned to net inflows on Thursday, snapping a 10-day losing streak, after a weak jobs report and softer signals from the Federal Reserve eased pressure on risk assets.

The funds raised $221.7 million, the largest daily return 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 its losing streak into mid-June.

The inflows ended a stretch that drained about $2.7 billion from the funds and capped a miserable June, the worst month on record for U.S. spot Bitcoin ETFs, which fell around $4.5 billion. Bitcoin, which fell to a 21-month low below $58,000 earlier this week, has since climbed back above $61,000, according to CoinGecko data.

Assess that fears decrease

The catalyst was a softer view of the US economy and a change in tone at the Fed. June of the government jobs report showed only 57,000 nonfarm payrolls added, well below the forecast of roughly 110,000, while Fed Chairman Kevin Warsh spotted that inflation risks had declined, reducing the chances of further interest rate increases and causing the dollar to retreat.

Warsh’s comments “improved overall market sentiment,” boosting inflows into Bitcoin ETFs and sparking Bitcoin’s rebound above $61,000, Andri Fauzan Adziima, research director at Bitrue Research Institute, told me. Declutter. Adziima added that “the same positive shift is now also supporting renewed flows into Ethereum ETFs,” with the products posting inflows of $14.9 million on Wednesday and $29.1 million on Thursday. SoSoValue.

Tim Sun, senior researcher at HashKey, linked the twist to “the marginal shift in interest rate expectations.” The continued outflows, he said, reflected the market’s “pricing in of further rate hikes,” pushing up the dollar and real interest rates against unyielding Bitcoin, while weak payroll data “weakened the market’s expectation of further rate hikes.”

No reversal yet

Sun warned that the rebound is “only a temporary recovery following the easing of interest rate pressures,” with a trend reversal not yet confirmed. Bitcoin’s path remains “constrained by changes in the US dollar, real interest rates and Federal Reserve policy,” he added.

Stephen Wundke, strategy and revenue director at Algoz Technologies, saw bargain hunters buying oversold assets after a flight to safety that even hit gold, with investors crowding into government bonds. Falling five-year yields and oil prices, he added, indicate inflation is coming back under control, as investors “looking for a BTC floor or recognizing oversold assets began bottom fishing.” Bitcoin may continue to bounce around the bottom for a few more weeks, he said, but the direction of travel is clear to see.

On prediction market Myraid, owned by Declutter‘s parent company Dastan, users remain bearish in that direction. They put the odds of Bitcoin’s next step it takes it to $55,000 from $84,000 at 74%, about the same as a week ago.