At the end of July 2025, Bitcoin faced renewed selling pressure due to several factors, including weak ETF inflows and general market caution.
Weak ETF Inflows
In the last few weeks of July, inflows into Bitcoin ETFs began to decline. While previous months saw a consistent flow of capital into ETFs, by late July this process became erratic. Some days showed positive flows, while others experienced significant outflows. This inconsistency highlighted growing uncertainty among investors.
Lack of Demand
The issue was not only the slowing down of ETF inflows but also the absence of alternative demand sources. With institutional buying cooling off, there was no noticeable activity from retail investors to fill the gap. As a result, when funds were pulled out of ETFs, the market lacked sufficient liquidity and buying pressure to maintain previous price levels.
General Market Sentiment
Beyond the ETF trends, the overall market sentiment remained cautious. Many investors chose to stay on the sidelines, awaiting clear signals from global economic data or regulatory updates. This created a thin trading environment, amplifying price drops even with modest sell-offs.
In summary, the decline of Bitcoin at the end of July was attributed to weakening ETF inflows, lack of alternative demand, and an overall cautious market atmosphere rather than a single dramatic event.
