Why Bitcoin Is Falling Despite $1.1 Billion in ETF Inflows
Bitcoin price has declined about 4% from recent highs, dropping to $71,235 as of late Wednesday, despite continued strong inflows from institutional investors into U.S.-listed spot Bitcoin ETFs. Over seven consecutive sessions, these ETFs saw approximately $1.16 billion in inflows. However, Wednesday marked the first daily outflow of around $129 million as macroeconomic conditions shifted. The Federal Reserve maintained its benchmark rate and signaled that inflation may remain higher than previously expected, reinforcing a higher-for-longer stance on interest rates. Rising oil prices and a higher producer price index have further dampened hopes for imminent rate cuts, pressuring both equities and cryptocurrencies. The S&P 500 and Nasdaq also experienced declines. Institutional conviction in Bitcoin remains firm, with analysts noting that sustained ETF inflows distinguish this pullback from earlier corrections and indicate Bitcoin’s growing role as a long-term portfolio asset. Traders are now focused on key support around $70,000 and upcoming economic data releases, such as jobless claims and the Philadelphia Fed manufacturing index, which may influence inflation outlook and market sentiment.
