BTC Reclaims $65K Mark as ETF Inflows Return: Is the Correction Over or Just a Pause?
Spot Bitcoin ETFs logged a second week of inflows, pushing BTC back above $65,000. This modest rebound follows an $8.2 billion outflow over eight weeks, with June marking record redemptions. Analysts are split: some see a multi-year recovery mirroring gold ETFs, while others forecast zero inflows and a lower price target.
US spot Bitcoin ETFs posted a second consecutive week of inflows, pulling in $75.7 million. This pushed $BTC back above $65,000. However, the $273.1 million recovered over two weeks barely registers against the $8.2 billion that exited funds in the prior eight weeks.
June was the worst month on record for these funds, seeing $4.5 billion flow out, surpassing February's $3.56 billion. BlackRock’s IBIT alone accounted for nearly 79% of June’s exits. Total AUM now sits at $77 billion, a significant drop from $104 billion in mid-May.
Bloomberg’s Eric Balchunas points to gold ETFs as a roadmap, suggesting a multi-year cycle of "spectacular gains, painful drawdowns, and recoveries." He implies patience is key. Conversely, Citigroup slashed its 12-month Bitcoin target to $82,000, citing stalled US crypto laws and weak institutional demand, projecting zero ETF inflows for the next year.
BlackRock CEO Larry Fink, however, declares the washout over, noting positive flow shifts. The debate rages: short-term weekly flows versus long-term historical cycles, especially with renewed Fed hike risk on the horizon.