Bitcoin [$BTC] has witnessed accumulation. Spot demand was still weak but recovering. Recently, CryptoQuant data of exchange netflows demonstrated that 9,030 $BTC left Binance.
Yet the Coinbase Premium Gap was negative, indicating that U.S. institutional investors were net sellers. AMBCrypto reported that there was reason to think seller exhaustion was at hand.
This exhaustion and a slow recovery in demand could set up the conditions for a recovery, and the bear cycle could be behind us.
In the short-term, leverage and realized volatility were also falling. In these conditions, a recovery is possible. Patience is needed to confirm a market turnaround.
Bitcoin ETF netflows reach positive streak not seen in nine months
Analyst Amr Taha pointed out that Bitcoin ETF inflows were not limited to a single entity. BlackRock’s IBIT recorded approximately $557 million in positive net flows between four sessions from July 14 and 21.
On July 21, 21Shares ARKB added approximately $70 million. Sustained positive readings show investor confidence in the market.
Santiment observed in a post on X that $981 million in Bitcoin spot ETF inflows were seen since July 14. This 7-day streak of inflows was a first in nine months, last occurring in October 2025, when Bitcoin was pushing toward the $126k highs.
Inflow momentum can lead the crypto markets higher, the intelligence platform wrote. On the flip side, a day of huge inflows could be a sign of FOMO. Heated short-term bullish conviction could lead to a local top forming.
The Bitcoin ETF flows led to a price bounce to a local high of $66,956. So far, it was unable to clear the $67,292 level and invalidate the bearish near-term price structure.
In other news, earlier in July, it was reported that a crypto bill was passed in Japan that could open the doors to spot Bitcoin ETFs listed on the Tokyo Stock Exchange. It would also cut the crypto tax rate from around 55% now to 20%.
The crypto bill has only cleared a committee in Japan’s Upper Parliament, but was not yet law. It could potentially become law by 2027.
Final Summary
- Bitcoin ETF net flows reached a 7-day positive streak, a length of time of consistent inflows last seen in October 2025, before the market topped.
- The market sentiment was recovering but it was still too early to call for a definitive market bottom.