Bitcoin ETFs Just Snapped a Weeks-Long Slump, But Will It Last?
US spot Bitcoin (BTC) exchange-traded funds (ETFs) recorded $221.72 million in internet inflows on July 2. It was the primary optimistic day for Bitcoin ETF inflows since June 12, per SoSoValue knowledge.
Glassnode’s newest weekly report, revealed Monday, describes Bitcoin as coming into a consolidation part. The agency sees spot promoting stress easing after weeks of heavy institutional redemptions.
Bitcoin ETF Inflows End a 10-Day Outflow Streak
Data from SoSoValue reveals the July 2 print snapped a 10-day outflow streak that had drained the funds since mid-June. Total internet belongings stood at $74.37 billion after the reversal, down from above $100 billion in early May.
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The pause in redemptions ends a punishing stretch. Spot Bitcoin ETFs shed practically $9 billion throughout two months of outflows, the deepest institutional pullback for the reason that merchandise launched in January 2024.
Price motion on Monday captured the market’s two-way rigidity. BTC slipped under $62,000 after Strategy, the most important company bitcoin holder, disclosed a sale. The worth then rebounded over $2,300 inside three hours to commerce close to $63,643 as of this writing.
The swift restoration extends final week’s jump toward $62,000 off a June 25 low close to $58,200. That trough sits roughly 54% under the October 6, 2025 peak of $126,080. The decline stays far shallower than the 77% to 84% drawdowns that closed the 2018 and 2022 cycles.
Glassnode Sees Consolidation as Selling Pressure Eases
In its Market Pulse report for week 28, Glassnode argued the market is shifting away from aggressive distribution and towards equilibrium.
“The Bitcoin market is presently exhibiting indicators of structural stabilization, characterised by a transition from aggressive distribution towards a state of equilibrium.”
Derivatives knowledge helps the shift. Futures open curiosity has risen, and long-side funding funds have exceeded historic norms, signaling renewed bullish urge for food. Meanwhile, moderation within the 25-delta choices skew suggests demand for draw back safety is fading.
On-chain exercise tells a comparable story. Active addresses and switch volumes are rising, and the typical ETF investor has returned to revenue. Long-term holders proceed to anchor the market regardless of lingering unrealized losses.
However, the agency flagged a rising share of scorching capital, the short-term and price-sensitive cash that usually precedes sharper swings. Monday’s whipsaw across the Strategy disclosure matches that sample, with volatility rising whilst profitability improves.
Shrinking Stablecoin Liquidity Clouds the Recovery
Not each gauge helps the restoration case, nonetheless. Analytics agency CryptoQuant flagged a contraction in stablecoin liquidity.
“USDC and USDT market cap are down -3.6% and -2% respectively over the previous 30 days. Overall, we are able to see that this slowdown has now been in place since November 2025,” wrote CryptoQuant.
Stablecoins are the first dry powder for crypto purchases. A liquidity slowdown relationship to November 2025 may due to this fact starve the ETFs of follow-through demand.
Without recent capital coming into the system, July 2 dangers standing as a one-day reprieve somewhat than a flip.
Sustained inflows over the approaching classes would present whether or not institutional demand has really returned. For now, the longer-term Bitcoin outlook hinges on whether or not consolidation resolves increased earlier than liquidity tightens additional.
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