US spot Bitcoin ETFs saw inflows for the second consecutive week despite a lack of sustained momentum. Analysts caution that stronger recovery requires decisive price action above $65K.
US-listed spot Bitcoin exchange-traded funds (ETFs) experienced renewed investor demand, with net inflows reaching $75.7 million in the two-week period ending July 17th, according to SoSoValue data. This follows a previous week’s inflow of $197.4 million, bringing total ETF inflows for July to $200.2 million.
Despite these positive signs, analysts from XS.com and Citi caution that the current pace is insufficient to confirm a broader uptrend. Simon-Peter Massabni, head of business development at XS.com, noted that Bitcoin needs to decisively break above the $65K-$65,500 range for a new trend reversal.
The Crypto Fear & Greed Index indicates ongoing investor caution; however, Massabni suggests that four consecutive days of inflows signal easing selling pressure rather than widespread institutional return. Citi recently cut its 12-month ETF inflow forecast from $10 billion to zero due to weaker-than-expected flows and outflows.
Eric Balchunas compared the trajectory of Bitcoin ETFs with gold ETFs, noting that both products have seen rapid adoption followed by extended periods of weaker performance. He suggests that each cycle may set higher highs over time, much like the current scenario for Bitcoin ETFs.
The market lacks a strong catalyst to turn the recent recovery into a genuine trend, according to Massabni. Analysts advise traders and investors to watch closely as Bitcoin approaches key resistance levels above $65K, which could either confirm or deny a sustained uptrend.
Traders should remain vigilant for any significant movements in ETF inflows, price action around critical support and resistance zones, and broader market sentiment indicators such as the Crypto Fear & Greed Index. The coming weeks will be crucial to determine if this renewed interest marks the start of a new bull run or remains just another temporary rally.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.