U.S. spot Bitcoin ETFs have recorded a five-day winning streak, attracting $2.65 billion in net inflows and pushing year-to-date flows to a positive $349 million. This strong demand lifted Bitcoin’s price to an eight-month high of $87,000 before renewed bond market pressure and potential Federal Reserve rate hike fears pulled it back below $84,000.
U.S. spot Bitcoin ETFs have recorded net inflows of $2.65 billion over the past five days, turning year-to-date flows positive at $349 million, as Galaxy Research data showed. On Monday alone, the ETF complex attracted $1 billion in daily inflows, followed by $714 million on Tuesday and $346 million on Wednesday.
BlackRock drove half of the ETF flows during this period. Bloomberg analyst James Seyffart noted the recent traction could soon help cumulative flows turn positive, adding that the outflows over the last year were driven by hedge funds and retail traders. Cumulatively, the ETF complex held $55 billion in Bitcoin despite the crypto winter, with only a 5.7% deficit from the peak.
The bullish momentum is facing renewed macro pressure, with the bond yield jumping to 5.1% and oil prices ticking higher, reinforcing new inflation fears. Interest rate traders priced a 64% chance of a rate hike at the next October Fed meeting, which dampened risk appetite mid-week.
Bitcoin slipped from $87,000 to below $84,000 on these concerns. Historically, U.S. Treasury intervention plans to control bond yields have been viewed as net inflationary and a boost to scarce assets like Bitcoin and gold. However, the asset typically remains muted before a Fed decision and tends to push higher afterward.
Analyst Benjamin Cowen projected the uptrend could be confirmed if Bitcoin achieves a weekly candlestick close above the May peak of $82,000.
