Key Highlights
- U.S. Bitcoin exchange-traded funds registered $225.2M in net redemptions on Thursday, breaking a week-long positive streak
- BlackRock’s IBIT experienced the largest withdrawals at $202.5M during the session
- Bitcoin momentarily traded below $65,000, reaching a low of $64,600, amid technical bearish signals
- Market sentiment indicator Crypto Fear & Greed Index declined to 28, marking July’s most pessimistic level
- Following Trump’s directive to halt U.S.-Iran military operations, Bitcoin consolidates near $64,300
Spot Bitcoin exchange-traded funds in the United States experienced net withdrawals totaling $225.2 million on Thursday, July 24, bringing an end to seven consecutive trading sessions of positive inflows that had generated nearly $1 billion in total additions.
This marked the category’s first day of negative flows since July 13. Nevertheless, despite this setback, the products concluded the trading week with approximately $274 million in cumulative net inflows.
BlackRock’s IBIT bore the brunt of the exodus, recording withdrawals of $202.5 million. Additional losses were reported across Fidelity’s FBTC, Bitwise’s BITB, ARK 21Shares’ ARKB, Franklin Templeton’s EZBC, and WisdomTree’s BTCW. In contrast, Morgan Stanley’s MSBT bucked the trend, attracting $5 million in fresh capital.
Geopolitical Conflict Weighs on Digital Asset Markets
The capital flight occurred against a backdrop of declining U.S. equity markets on Thursday, influenced by escalating U.S.-Iran military hostilities now stretching into their fifth month. Elevated crude oil valuations have intensified inflation anxieties and sparked discussion regarding potential Federal Reserve interest rate increases.
Bitcoin temporarily descended beneath the $65,000 threshold, registering an intraday bottom at $64,600. The digital asset currently trades beneath a death cross formation ā a technical indicator characterized by the short-term moving average crossing below the long-term moving average, traditionally interpreted as a bearish market signal.
The Crypto Fear & Greed Index retreated by three points to settle at 28, representing the month’s weakest sentiment measurement.
Market analyst Ali Charts highlighted a critical price threshold for traders to monitor. According to his assessment, maintaining support at $63,800 could facilitate a rally toward $67,000. Should this floor fail to hold, the subsequent downside objective sits at $60,000.
Central Bank Policy Meeting Approaches
Reports indicate Trump directed American military forces to suspend operations against Iran following 13 uninterrupted days of airstrikes. The cessation coincided with diplomatic discussions between Omani officials and Iranian representatives in Tehran regarding the potential reopening of the Strait of Hormuz.
Notwithstanding the temporary cessation, regional instability persists. Houthi activity in the Bab al-Mandab Strait continues to interfere with international maritime commerce.
Bitcoin is currently trading in the vicinity of $64,300, representing a modest gain of under 1% for the daily session.
Ethereum exchange-traded funds demonstrated contrasting performance, recording inflows of $26.3 million on Thursday and prolonging their positive streak to five consecutive sessions.
Market participants are now focused on the Federal Reserve’s upcoming policy meeting scheduled for July 28-29. While CME FedWatch data indicates expectations for unchanged rates, Polymarket participants assign a 72% probability to at least one rate increase occurring before year-end.
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