- U.S. spot Bitcoin ETFs ended a 10-day outflow streak with $223.5 million in net inflows led by Fidelity.
- Bitcoin climbed above $62,000 as improving macro sentiment and a $100 million short squeeze fueled the rally.
- Analysts are watching Bitcoin’s key resistance zone, with ETF flows likely to influence the next market move.
U.S. spot Bitcoin exchange-traded funds (ETFs) ended a 10-day streak of net outflows on Thursday, attracting $223.5 million in fresh capital. The turnaround came as Bitcoin climbed above $62,000 for the first time in two weeks.
The inflows marked the strongest single day of net additions since May 5. The rebound suggests institutional demand is coming back after two weeks of steady withdrawals. It also coincided with crypto market recovery amid improving macroeconomic sentiment.
Fidelity Leads ETF Recovery
According to the latest ETF flow data, Fidelity’s FBTC led the market with $166 million in inflows. ARK Invest’s ARKB attracted $91.8 million while VanEck saw $4.34 million in inflows.
Valkyrie’s BRRR saw $1.7 million inflows while Grayscale’s GBTC, Franklin’s EZBC, and Morgan Stanley’s MSBT all posted no net flows for the day. Notably, BlackRock saw $40.43 million in outflows, recording the only sale for the day.
Ultimately, the $223.5 million in total inflows ended a difficult stretch that saw billions of dollars leave spot Bitcoin ETFs over the previous 10 trading days.
Bitcoin Climbs Above $62K
Bitcoin traded at $58,000 in the final week of June before rebounding at the start of July. It gained 2.19% over the past 24 hours, trading at $61,670. It briefly reached an intraday high of $62,117, its highest price in about two weeks.
But despite the recovery, Bitcoin remains down about 8% over the past month and roughly 29.5% year-to-date. The latest rally has helped improve market sentiment after weeks of consolidation and selling pressure.
Macro Tailwinds and Short Squeeze Fuel Rally
The recovery was driven mainly by improving expectations for U.S. monetary policy rather than Bitcoin-specific developments. Federal Reserve Chair Kevin Warsh said on July 2 that inflation risks had “moderated”. His comments eased concerns that further interest rate hikes might be needed.
Sentiment improved further after weaker-than-expected U.S. June payroll data. The report strengthened expectations for a more accommodative policy outlook.
The shift in macro sentiment lifted risk assets broadly, with cryptocurrencies among the biggest beneficiaries.
Bitcoin’s rapid rise also triggered a large short squeeze. More than $100 million in bearish Bitcoin positions were liquidated over the past 24 hours. Traders were forced to buy back positions, adding further momentum to the rally.
From a technical standpoint, Bitcoin is approaching a key resistance zone. The area lies between the 61.8% Fibonacci retracement level near $61,436 and the 50% retracement level around $62,575.
A sustained move above that range could support further gains. However, renewed ETF outflows or weaker market sentiment could slow the recovery.
Related: Bitcoin Price Prediction: BTC Stabilizes Near $60K as Metaplanet Adds 2,823 BTC to Treasury
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