Bitcoin ETFs Halt 7-Day Inflow Streak: Market Calls It ’Healthy’ Rebalancing
Wall Street's Bitcoin love affair hits a pause—but don't call it a breakup.
After seven straight days of bullish inflows, Bitcoin ETFs finally took a breather. Traders are calling it a 'healthy recalibration' rather than a bearish signal.
Why the slowdown? Profit-taking meets institutional repositioning. Big money isn't exiting—it's just shifting weight.
Even the most cynical finance bros admit: sometimes pulling back is how you leap further. Classic 'two steps forward, one step back' crypto dance.
Remember: in a market this volatile, a pause isn't panic—it's strategy. And honestly, after seven green days, who wouldn't cash a little profit? Even ETFs need to rebalance.
“Healthy” rebalancing
“The pause in inflows looks like healthy short-term rebalancing rather than any real change in sentiment,” Farzam Ehsani, co-founder and CEO of crypto exchange VALR, told Decrypt.
After more than $2.3 billion pouring in over just a week, “it’s natural for markets to catch their breath,” Ehsani noted.
Even after the Fed cut its benchmark rate by 0.25 percentage points to a range of 4% to 4.25% on Wednesday, Bitcoin’s response was muted, with the cryptocurrency now trading at around $117,750, up 1.7% on the day according to CoinGecko data.
Bitcoin’s price action reflected how investors had already priced in the widely expected move, with attention shifting to the Fed’s more cautious economic forecasts, particularly for its employment outlook, Decrypt was told.
Ethereum, meanwhile, is currently trading around $4,600, up 2.8% on the day, after Hyperliquid and Avalanche led a brief post-Fed rate cut rally into Thursday.
“What’s more important is the broader trend that sees institutions steadily building allocations, and the demand for regulated exposure via ETFs that continues to grow,” Ehsani said.
Asked about how macro factors weigh on crypto, Ehsani said the Fed’s move, for one, “injects liquidity and pushes investors to look for assets with stronger return potential,” and that Bitcoin “naturally stands out in that environment.”
The current cycle is more bullish owing to crypto infrastructure showing it is “ready to absorb and channel that capital,” Ehsani said, referring to institutional demand.
“The inflows we’ve seen are likely just the beginning,” he added. “It’s the combination of accommodative macro conditions and crypto’s fresh maturity that makes this moment promising.”
