Recent data showed a significant reduction in investment volumes in spot Bitcoin ETFs in the US, linked to changes in the economic situation and political decisions.
Overview of Bitcoin ETF Inflows
Last week, the inflow into spot Bitcoin ETFs amounted to $769.6 million, a 65% decrease from the previous week when it reached $2.22 billion. The week started with $102.14 million in net inflows on Monday, but significant outflows of $342.25 million were reported on Tuesday. By midweek, conditions improved with inflows of $407.78 million on Wednesday and $601.94 million on Thursday, marking the highest amount for a single day since May.
Impact of Economic Factors on Demand
The decrease in inflow is partly attributed to profit-taking activity, as Bitcoin approached its all-time high of $111,960. Investors likely sought to lock in profits ahead of the holiday weekend. Furthermore, stronger than expected job reports in the U.S. weakened rate cut expectations, impacting market sentiment. Additionally, the Senate approved Trump's budget bill, which did not include tax provisions for crypto assets, disappointing the sector.
Forecasts and Future Expectations for Bitcoin
Despite the reduced inflow volumes, analysts remain optimistic about Bitcoin's medium-term outlook. Standard Chartered reaffirmed its Q3 target at $135,000 and an annual forecast of $200,000. Other analysts, including those from Bernstein and BitMEX’s Arthur Hayes, set even more aggressive targets between $200,000 and $250,000 by year-end, contingent on ETF inflows and global liquidity conditions.
Thus, as macroeconomic conditions and political decisions evolve, investors continue to weigh risks and opportunities in the Bitcoin market. Future inflow stability could hold potential for further Bitcoin growth.