- Bitcoin ETFs recorded $225.2 million in outflows, ending a seven-day inflow streak.
- Iran conflict and inflation fears weakened market sentiment and pressured Bitcoin prices.
- Traders now await the Federal Reserve meeting for Bitcoin’s next major market catalyst.
Bitcoin — BTC, entered another volatile trading session after institutional investors pulled money from U.S. spot Bitcoin ETFs for the first time in more than a week. The sudden reversal interrupted strong momentum that had attracted nearly $1 billion in fresh capital during the previous seven trading sessions. At the same time, escalating geopolitical tensions between the United States and Iran increased uncertainty across global financial markets. Rising oil prices, inflation concerns, and growing expectations surrounding the Federal Reserve’s next policy decision have combined to create a cautious environment.
ETF Outflows and Global Tensions Weigh on Bitcoin
U.S. spot Bitcoin ETFs recorded $225.2 million in net outflows on Thursday, July 24, ending an impressive seven-day inflow streak. Although the single session marked the first negative day since July 13, the overall weekly picture remained positive. The ETF sector still closed the five-day trading week with approximately $274 million in net inflows.
BlackRock’s IBIT accounted for the overwhelming majority of the withdrawals after investors pulled $202.5 million from the fund. Other major issuers also experienced modest outflows. Fidelity’s FBTC, Bitwise’s BITB, ARK 21Shares’ ARKB, Franklin Templeton’s EZBC, and WisdomTree’s BTCW all finished the day in negative territory. Morgan Stanley’s MSBT provided the only bright spot after attracting $5 million in fresh investments.
The decline in ETF demand coincided with growing anxiety across broader financial markets. The ongoing military conflict between the United States and Iran has now stretched into a fifth month, encouraging investors to move away from higher-risk assets. U.S. equities also weakened as elevated oil prices continued fueling inflation concerns.
Federal Reserve Decision Could Determine Bitcoin’s Next Direction
While geopolitical risks remain elevated, recent diplomatic developments have provided a small measure of optimism. Reports indicate that President Donald Trump ordered a temporary pause in military strikes after thirteen consecutive days of attacks. The decision followed meetings between Omani officials and Iranian representatives in Tehran as both sides discussed reopening the Strait of Hormuz, one of the world’s most important energy shipping routes.
Despite those discussions, uncertainty remains high because Houthi activity around the Bab al-Mandab Strait continues disrupting international trade and raising concerns across global markets. BTC traded near $64,300 at the time of writing, posting only modest daily gains as buyers remained cautious. Market participants continue weighing geopolitical developments against broader macroeconomic risks, making sustained recovery difficult in the near term.
Ethereum, however, delivered a stronger performance during the same period. Spot Ethereum ETFs attracted $26.3 million in fresh inflows on Thursday, extending a five-day streak of positive institutional demand. The contrasting performance suggests that investor interest has shifted rather than disappeared entirely, with some market participants favoring Ethereum over Bitcoin under current conditions.
