Bitcoin Holds Near $65,300 as ETF Outflows Offset Improving Risk Sentiment

Dubai | EcoPulse24

Bitcoin traded around $65,300 in late July, holding within a narrow range after plunging to a nearly two-year low earlier this month, as improving sentiment across global risk assets was offset by renewed selling from U.S. spot Bitcoin exchange-traded funds (ETFs).

The cryptocurrency stabilized as the United States and Iran extended their pause in retaliatory strikes, easing fears of broader disruptions to Middle East energy supplies following recent military tensions.

However, the recovery remained restrained as investors continued to reassess expectations for U.S. monetary policy and institutional demand for digital assets.

ETF Outflows Limit Bitcoin's Recovery

Institutional demand softened after U.S.-listed spot Bitcoin ETFs recorded more than $465 million in combined net outflows on July 23 and July 24, ending a seven-session streak of inflows.

The withdrawals reflected growing investor concerns that the Federal Reserve could keep interest rates elevated for longer amid persistent inflation risks.

Despite the two-day wave of selling, weekly ETF flows remained positive, with net inflows totaling $33.8 million, indicating that broader institutional participation has yet to reverse decisively.

Markets Watch Fed and Crypto Legislation

Investors are also monitoring developments surrounding the Clarity Act, the long-awaited U.S. cryptocurrency market structure legislation.

Negotiations over the bill have stalled amid disagreements regarding ethics provisions, delaying progress on a framework that many industry participants view as essential for improving regulatory certainty.

At the same time, markets are awaiting this week's Federal Reserve policy decision, which is expected to play a significant role in determining the near-term direction of both cryptocurrencies and broader financial markets.

Risk Sentiment Improves

The extension of the pause in hostilities between Washington and Tehran helped improve overall market sentiment by reducing concerns about disruptions to global oil supplies.

The easing geopolitical backdrop supported demand for risk assets, including cryptocurrencies, although the positive impact was largely offset by weaker ETF flows and uncertainty over the outlook for U.S. interest rates.

Market Snapshot

EcoPulse24 Analysis

Bitcoin remains caught between improving macro sentiment and weakening institutional demand. The temporary easing of geopolitical tensions has supported broader risk appetite, but investors remain cautious as expectations for higher U.S. interest rates continue to pressure digital assets.

Meanwhile, ETF flows remain a critical barometer of institutional participation. Although recent outflows interrupted a week-long buying trend, the market has so far avoided a broader reversal. Attention is now shifting to the Federal Reserve's policy decision and the fate of the U.S. Clarity Act, both of which could shape Bitcoin's direction in the weeks ahead.