Fidelity’s Wise Origin Bitcoin Fund (FBTC) bounced back with $15.5 million in net inflows, reversing the previous day’s heavy $43 million outflow. This marked a break in FBTC’s recent streak of mostly outflows, signaling a brief return of institutional appetite for spot Bitcoin ETFs.
On the same day, seven other U.S. spot Bitcoin ETFs also recorded inflows, pushing the total daily net inflow to $233 million the highest in three weeks. The surge suggested some renewed demand from institutional investors as July closed, though one positive session doesn’t guarantee a sustained reversal in sentiment.
Market Signals Paint a Mixed Picture
Despite the ETF inflows, the Coinbase Premium Index remained negative. Bitcoin was trading at a discount on Coinbase compared to Binance, hinting at weaker demand from U.S.-based investors who primarily use Coinbase. This divergence leaves doubts about whether the inflow momentum can carry into August.
Meanwhile, Bitcoin’s exchange net flows stayed positive for the third day in a row, with around 2,900 BTC entering exchanges. This inflow indicates increased potential selling pressure, as more coins are available on exchanges. However, it doesn’t confirm that those coins have been sold yet.
Directional indicators continue to lean toward bearish sentiment. Bitcoin’s negative Directional Indicator stands at 22, outpacing the positive one at 17. The Average Directional Index rose to 21, suggesting sellers hold a mild edge, but the overall trend lacks strong conviction.
Bitcoin’s Momentum Shift indicator remains negative, reinforcing the fragile market structure. While ETF inflows might slow the downward trend, current buying pressure appears insufficient to spark a clear rebound.
If the selling persists, Bitcoin could dip toward $62,000. On the other hand, sustained institutional inflows might be needed to push it back toward the $70,000 level.
This material is for informational purposes only and does not constitute financial advice.
