Key Highlights
- U.S. Bitcoin ETFs experienced $225.2M in net withdrawals on Thursday, breaking a seven-consecutive-day positive flow pattern
- BlackRock’s IBIT dominated the exodus with $202.5M in single-day outflows
- Bitcoin momentarily traded below $65,000, reaching a low of $64,600, while forming a death cross technical pattern
- Market sentiment plunged as the Crypto Fear & Greed Index dropped to 28, marking the month’s most bearish reading
- Following Trump’s directive to halt U.S.-Iran military operations, Bitcoin remains range-bound near $64,300
On Thursday, July 24, U.S.-listed spot Bitcoin exchange-traded funds witnessed $225.2 million in net withdrawals, bringing an end to seven consecutive trading sessions of positive flows that had totaled nearly $1 billion.
This marked the first session of negative flows for the asset class since July 13. Nevertheless, the weekly performance remained strong, with the funds closing the five-trading-day period approximately $274 million in the green.
BlackRock’s flagship IBIT bore the brunt of the withdrawals, hemorrhaging $202.5 million. Fidelity’s FBTC, Bitwise’s BITB, ARK 21Shares’ ARKB, Franklin Templeton’s EZBC, and WisdomTree’s BTCW each recorded modest outflows. Morgan Stanley’s MSBT stood as the sole exception, attracting $5 million in fresh capital.
Middle East Conflict Weighs on Digital Assets
The capital flight coincided with a broader selloff in U.S. equities on Thursday, triggered by escalating U.S.-Iran military confrontations entering their fifth month. Crude oil prices have surged, intensifying inflation anxieties and prompting market discussions about potential Federal Reserve rate increases.
Bitcoin momentarily breached the $65,000 threshold, declining to $64,600. The cryptocurrency is currently positioned beneath a death cross formation — a technical indicator occurring when the short-term moving average crosses below the long-term moving average, typically interpreted as a bearish market signal.
The Crypto Fear & Greed Index declined three points to settle at 28, representing the month’s most pessimistic sentiment reading.
Market analyst Ali Charts highlighted a crucial support threshold. He emphasized that maintaining $63,800 as a floor could trigger a rally toward $67,000. However, a breakdown below this level would likely send Bitcoin toward $60,000.
Federal Reserve Meeting Takes Center Stage
President Trump allegedly instructed U.S. military forces to suspend strikes against Iran following 13 straight days of military operations. The cessation emerged as Omani diplomats engaged with Iranian counterparts in Tehran to negotiate the reopening of the Strait of Hormuz.
Despite the temporary ceasefire, geopolitical uncertainty persists. Houthi militant activity in the Bab al-Mandab Strait continues to create obstacles for international maritime commerce.
Bitcoin is currently trading near $64,300, registering a marginal increase of less than 1% for the session.
Ethereum ETFs demonstrated contrasting momentum, accumulating $26.3 million in inflows on Thursday, marking their fifth consecutive day of positive flows.
Market participants are now focused on the Federal Reserve’s upcoming July 28-29 policy meeting. While CME FedWatch projections indicate expectations for unchanged interest rates, Polymarket participants are pricing in a 72% probability of at least one rate increase before year-end.
