Bitcoin Nears $65K as Cooling US Inflation Offsets Record-Low ETF Inflows
Bitcoin climbed toward $65,000 this week as softer US inflation data and a steady Fed lifted risk appetite — even as spot Bitcoin ETFs logged their weakest month of inflows since launch.
Stablecoin & Payments Correspondent · · 4 min read
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Bitcoin Nears $65K as Cooling US Inflation Offsets Record-Low ETF Inflows
Bitcoin and Ether Advance as US Inflation Cools
Bitcoin pushed back toward the $65,000 level this week, with the asset trading near $64,700–$65,000 and posting a gain of roughly 1.3–2% over 24 hours. The move came as traders digested a softer-than-expected US inflation print, which investors read as reducing the odds of aggressive monetary tightening later this year. Ether, Solana, and XRP all advanced alongside Bitcoin, with the broader market showing its strongest coordinated move in several sessions. Trading volumes across major exchanges rose in tandem, suggesting the rally was driven by more than thin, low-liquidity buying.
The Fed Factor: Rates Held, but Yields Keep Climbing
The rally followed the Federal Reserve's decision to leave interest rates unchanged at its latest meeting, a move that initially calmed risk markets, including crypto. However, the picture is not entirely one-sided: US Treasury yields continued to push higher in the days that followed, with the 30-year bond reaching levels not seen in years. That divergence — easing inflation on one hand, rising long-term yields on the other — has left traders split on how durable the current crypto rebound will prove to be, particularly with the Fed's next moves still uncertain.
US Spot Bitcoin ETFs Post Their Weakest Month on Record
Beneath the price recovery, however, sits a more cautious institutional story. US spot Bitcoin ETFs are on pace to record roughly $205 million in net inflows for July — the smallest monthly total since the products launched in January 2024. The figure marks a technical improvement after two brutal months: more than $2.4 billion left the funds in May, followed by over $4.5 billion in June. Even so, July's inflows are dwarfed by prior positive months, many of which drew in the billions. Ether ETFs, by contrast, have modestly outperformed their Bitcoin counterparts this month, pulling in over $340 million.
What the Divergence Means for Investors
The combination of a rising spot price and near-flat institutional flows suggests the current rally is being driven more by short-term positioning and macro sentiment than by fresh, sustained institutional buying. Analysts note that a single strong trading day is not the same as a strong month, and with Bitcoin still down significantly from its 2025 highs, market participants are likely to watch upcoming inflation data, Fed commentary, and ETF flow trends closely before drawing firmer conclusions about where the market heads next.
Stablecoin & Payments Correspondent
Sofia Lindqvist is a Stablecoin & Payments Correspondent at Coin Currents Daily, where she specializes in stablecoins, digital payments, tokenized dollars, cross-border settlements, central bank digital currencies (CBDCs), and the evolving infrastructure of blockchain-based finance. Her work focuses on analyzing how stablecoins and digital payment networks are reshaping the global financial system, helping readers understand the technologies, regulations, and market forces driving the adoption of blockchain-powered payments. Sofia regularly covers major stablecoin issuers, payment innovations, tokenized assets, cross-border transaction networks, and regulatory developments through data-driven reporting and in-depth industry analysis. Before joining Coin Currents Daily, Sofia researched digital payment systems, financial technology, and blockchain-based settlement infrastructure, developing expertise in stablecoin ecosystems, tokenized financial products, and global payment networks. Her reporting combines technical accuracy with clear, accessible explanations, enabling readers to understand both the practical applications and the broader economic impact of digital currencies. At Coin Currents Daily, Sofia contributes daily news coverage, market analysis, educational guides, and long-form research articles focused on stablecoins and the future of digital payments. Her goal is to provide readers with reliable, objective insights into one of the fastest-growing sectors of the digital asset industry while highlighting the innovations, regulatory changes, opportunities, and challenges shaping the future of global finance.