#BTCHashratePeak #BTCReclaims120K $BTC $ETH $ERA

, ending a four-day streak of outflows.

Analysts say that the rise in flows into Bitcoin exchange-traded funds (ETFs) after four consecutive days of outflows indicates a shift in investor sentiment.

In summary

Bitcoin ETFs saw inflows of $91.6 million on Wednesday.

Analysts pointed out that expectations for interest rate cuts are the main driver behind recent ETF flows.

Short-term expectations remain stable, but experts are exercising caution.

Bitcoin exchange-traded funds ended a streak of four consecutive days of outflows on Wednesday, garnering $91.6 million, according to data from Farside Investors. This reversal indicates renewed investor confidence, despite last week's decline and a series of outflows, analysts told Decrypt.

Bitcoin exchange-traded funds ended a streak of four consecutive days of outflows on Wednesday, garnering $91.6 million, according to data from Farside Investors. This reversal indicates renewed investor confidence, despite last week's decline and a series of outflows, analysts told Decrypt.

A report on digital asset fund flows from CoinShares this week, published on Monday, predicted that last week's massive outflows were likely a reaction to the Federal Reserve's hawkish stance.

However, flows of $91.6 million into Bitcoin ETFs on Wednesday, and $110.4 million into Ethereum ETFs over the past two days, suggest that the situation has changed, according to Sean Young, senior analyst at MEXC Research. He argued that investor sentiment "has started to stabilize after a period of volatility," confirming the recent volatility in ETF flows.

Is it possible for the Federal Reserve to cut interest rates?

The significant decline in jobs data for May and June, along with President Donald Trump's firing of the head of the U.S. Bureau of Labor Statistics, fueled this shift in narrative. Expectations for interest rate cuts in September last week reinforced market expectations for a bullish scenario, with forecasters at Myriad predicting an 82% probability that the Federal Reserve will change interest rates.

(Disclaimer: Myriad is a prediction market on-chain launched by DASTAN, the parent company of Decrypt)

Analysts who spoke to Decrypt earlier said that expectations for interest rate cuts are driving a short-term increase in liquidity despite weak fundamentals and macroeconomic risks.

According to Young, a combination of "slowing inflation, Bitcoin's resilience, and key support levels" are the main factors driving recent flows. However, he warned that despite renewed investor interest, "it is still too early to judge the sustainability of the bullish trend."