Bitcoin Rebounds Toward $63.5K as Historic ETF Outflows Continue for an Eighth Straight Week
Bitcoin staged an impressive recovery over the July 4 holiday weekend, climbing back toward $63,500 after briefly slipping below $58,000 earlier in the week.
While the price rebound sparked renewed optimism among traders, institutional sentiment remained mixed as US spot Bitcoin ETFs extended their record-breaking outflow streak to eight consecutive weeks.
Here’s what happened and why the market is paying close attention.
✅ Bitcoin Pushes Higher After Sharp Weekly Selloff
Bitcoin traded as high as approximately $63,450 on July 5, marking its strongest level in nearly two weeks. The move came after $BTC had fallen below the $58,000 mark earlier in the week, reaching its lowest level in about 21 months before buyers stepped in.
The holiday weekend likely played a role in the rebound, as thinner exchange order books during the US Independence Day break allowed relatively smaller buying pressure to move prices higher.
Meanwhile, Coin. Glass data showed around $167 million worth of crypto liquidations within 24 hours, with short positions making up the majority of those liquidations.
A trader described the rally on as a classic short squeeze, where traders betting against Bitcoin were forced to buy back their positions as prices climbed, accelerating the upward move.
The next major test is whether Bitcoin can successfully hold the 200-week simple moving average (SMA) around $62,700 as support. If that level fails, the recent bounce could simply prove to be a liquidation-driven rally before another decline.
Another trader, Killa, also highlighted an interesting market pattern, noting that each of the previous seven Mondays had brought notable weakness for Bitcoin. He questioned whether the trend would continue into the coming week.
✅ US Spot Bitcoin ETFs Extend Record Outflow Streak
Despite Bitcoin’s recovery, institutional flows continued telling a different story.
According to SoSo. Value data, US spot Bitcoin ETFs recorded roughly $527 million in net outflows during the four trading sessions ending July 2. That marks the eighth consecutive week of net withdrawals the longest weekly outflow streak since spot Bitcoin ETFs launched.
Before this stretch began in mid-May 2026, these funds had never experienced more than five consecutive weeks of outflows.
Year-to-date, investors have pulled approximately $5.53 billion from US spot Bitcoin ETFs.
Still, the week wasn’t entirely negative.
On July 2, the ETFs attracted $221.72 million in net inflows, their strongest single-day performance since May 5. The inflow also snapped a 10-session losing streak that had seen nearly $2.71 billion leave the products.
Fidelity’s FBTC led the day’s inflows with $165.96 million, while ARK 21Shares’ ARKB followed with $91.84 million.
BlackRock’s IBIT, however, stood out for the opposite reason.
The fund recorded $40.43 million in outflows on July 2, marking its 11th straight trading day of investor withdrawals. During that period, roughly $2.2 billion exited the fund.
Even after the recent redemptions, IBIT remains the largest US spot Bitcoin ETF, managing approximately $44.91 billion in net assets while maintaining $59.99 billion in cumulative inflows since launch.
✅ Macro Conditions Could Shape Bitcoin’s Next Move
Beyond ETF activity, macroeconomic developments are also influencing market sentiment.
Trading firm QCP Capital, in its July 4 market update, said the July 2 ETF inflows may signal that institutional buyers are beginning to return after roughly $2.4 billion in recent redemptions.
The firm also pointed to weaker-than-expected US nonfarm payrolls data released the previous week, arguing that softer labor numbers have reduced expectations for additional Federal Reserve rate increases.
According to CME Group’s FedWatch Tool, markets were assigning nearly an 80% probability that the Federal Reserve would leave interest rates unchanged at its July 29 meeting.
QCP added that upcoming Consumer Price Index (CPI) data will be especially important, as a favorable inflation reading could further strengthen expectations for a more supportive monetary policy environment.
✅ Ethereum ETFs Also Face Selling Pressure While HYPE Funds Slow
Bitcoin wasn’t the only digital asset seeing continued ETF outflows.
US spot Ethereum (ETH) ETFs posted $13.67 million in net outflows during the week ending July 3, extending their own losing streak to eight consecutive weeks. That matches the previous record established between late February and mid-April 2025.
There were, however, early signs that selling pressure may be easing.
The ETH funds recorded positive net inflows on both July 2 and July 3, marking their first back-to-back days of inflows since mid-June 2026.
BlackRock’s ETHA led the July 3 inflows with $29.74 million.
As of July 5, Ethereum was trading near $1,780, while US spot ETH ETFs collectively managed around $9.02 billion in net assets, representing approximately 4.4% of Ethereum’s total market capitalization.
Meanwhile, US-listed Hyperliquid (HYPE) ETFs brought in $4.32 million during the week, their weakest weekly performance since launching in mid-May 2026.
The figure marks a sharp slowdown from the record $111.36 million collected during the week ending June 26.
Even so, the three HYPE ETF products continue to hold a combined $336.41 million in net assets, supported by approximately $298.24 million in cumulative inflows since launch.
From the look of things, Bitcoin’s return toward $63.5K has given the market a much-needed boost after a difficult week, with short liquidations helping fuel the rebound.
However, the broader picture remains mixed as institutional investors continue withdrawing funds from US spot Bitcoin ETFs at a historic pace.
The coming days could prove decisive. Traders will be watching whether Bitcoin can defend its 200-week SMA around $62,700, while macroeconomic data particularly the upcoming CPI report and the Federal Reserve’s July meeting could determine whether the current recovery develops into a stronger trend or loses momentum.
For now, $BTC has regained some bullish momentum, but ETF flows and macro conditions remain the key indicators to watch.