U.S.-listed
$BTC ETF’s saw net outflows of $196 million on Tuesday, marking the fourth consecutive day of withdrawals, as fears of stagflation spooked investors and weighed on risk assets like BTC and tech stocks.
📉 ETF Outflows Intensify
The outflows were led by Fidelity’s FBTC and BlackRock’s IBIT, according to data from SoSoValue. This latest round of withdrawals follows a sharp bleed of:
$114.83M on Thursday$812.25M on Friday$333.19M on Monday
This is now the longest outflow streak since April.
📊 Macro Data Spurs Market Jitters
The catalyst? U.S. ISM Services PMI data showed signs of stagflation a toxic mix of high inflation, weak employment, and sluggish economic activity. This sent shockwaves through markets:
The Nasdaq dropped 0.7%Bitcoin fell over 1%, dipping to $112,650 before rebounding slightly near $114,000
💬 According to LondonCryptoClub on X:
“Stagflationary mix on the ISM knocking risk here… Employment contracting, orders weak, prices rising. The worst scenario for risk assets.”
📈
$ETH ETFs See Opposite Trend
Interestingly,
$ETH ETFs saw net inflows of $73.22M, likely driven by recent SEC guidance suggesting staking may not be treated as a securities offering a bullish regulatory shift.
📉 Rate Cuts Incoming?
Despite stagflation fears, bets on Federal Reserve rate cuts are growing after weak U.S. labor data. Bloomberg reports that options tied to the SOFR suggest potential cuts at each of the three remaining Fed meetings this year, totaling up to 75 bps in 2025.
⏳ What’s Next?
With economic uncertainty rising, all eyes are now on the Fed’s September meeting. If employment and growth data continue to weaken, a rate cut may be inevitable but whether that’s enough to stop the bleeding in Bitcoin ETFs remains to be seen.
#ETH #CryptoGains #DiamondHand #write2earnonbinancesquare