Bitcoin (BTC) and Ethereum (ETH) Spot ETFs See Mixed Flows as Market Consolidation Continues

Bitcoin (BTC) closed the week at approximately $96,120, marking a slight 0.4% decline from the previous week's close of around $96,465.

Bitcoin (BTC) closed the week slightly lower, showing a 0.4% decrease and trading around $96,120, compared to the previous week’s closing price of around $96,465. BTC spot ETFs saw an outflow of nearly $600 million last week.

However, the market consolidation and uncertainty continue due to macroeconomic factors, especially the Federal Reserve’s (FED) future interest rate decisions.

Bitcoin (BTC) closed the week on a slightly downbeat note, trading around $96,120 on Monday, February 19. This marks a marginal 0.4% decrease from the previous week’s close of around $96,465. BTC began the week trading at approximately $94,480 on Monday, February 12, and went on to experience a relatively narrow trading range throughout the week.

After rising above $96,000 on Tuesday and Wednesday, BTC encountered resistance at around $96,500 and consolidated sideways for the remainder of the week.

On Friday, BTC briefly dipped below $96,000 but later recovered to close the week above this level.

Despite the slight decrease, BTC managed to hold above the $96,000 price level throughout the week, continuing a trend of relatively high prices and reduced volatility that began in the prior week.

Over the past 13 trading days, BTC has fluctuated between $94,000 and $100,000, exhibiting lower volatility compared to its historical average. This narrower trading range reflects a phase of market consolidation and uncertainty.

One factor influencing market sentiment is macroeconomic concerns. Recent inflation readings came in higher than anticipated, prompting a shift in market participants’ outlook for 2025 monetary policy.

Earlier, investors expected a 100-basis-point rate cut in 2025, continuing the trend seen in late 2024. However, given the latest economic data, expectations have adjusted to a potential 25 or 50 basis-point cut this year.

The first cut is now anticipated in the summer, with a second, if it occurs, likely toward the end of the year. Labour market strength and inflation trends will be closely watched for the FED’s next moves.

A weakening labour market together with declining inflation could support additional rate cuts, whereas a robust labour market combined with persistent inflation may force the FED to maintain higher interest rates for longer.

In related news, BTC spot ETFs experienced an outflow of nearly $600 million in the last week, breaking a six-week streak of positive inflows.

This aligns with historical trends, where periods of sustained positive flow are typically followed by a brief negative week. However, since mid-September, this marks only the fourth week of negative flow, underscoring the strong demand and overall bullish sentiment for BTC-backed ETPs.

Total net inflows since inception now stand at $40.1 billion, averaging over $3 billion per month since their launch in January last year.

Meanwhile, Ethereum (ETH) spot ETFs recorded a net inflow of approximately $12 million in the last week.

This brings the total inflows since inception to $3.2 billion, reflecting the positive sentiment observed in Q4 2024, which appears to be carrying into early 2025.

Market sentiment remains uncertain, with investors closely monitoring macroeconomic indicators and evolving geopolitical developments.