Bitcoin ETFs see biggest inflow since May after weak US jobs report sparks BTC price rebound
Key Takeaways
- US spot Bitcoin ETFs recorded $223 million in net inflows on Thursday, their largest single-day inflow since May and the first positive day after a 10-day withdrawal streak that removed $2.73 billion, according to CryptoSlate citing SoSoValue data.
- Bitcoin rebounded above $62,000 after touching a 21-month low below $58,000 earlier in the week, a move CryptoSlate linked to a weaker-than-expected June US jobs report that reduced near-term fears of further rate hikes.
- Despite the rebound, CryptoSlate notes Bitcoin ETFs have still seen close to $8.5 billion in net outflows since early May per Santiment data, and analysts remain split on whether this marks a genuine turning point or a brief pause in selling.
What Triggered the Reversal in ETF Flows
According to CryptoSlate, the shift in sentiment traces back to Thursday’s US employment report, which showed employers added just 57,000 jobs in June, far below economist expectations of roughly double that figure. The Bureau of Labor Statistics also revised April and May payroll figures down by a combined 74,000 jobs, undercutting the narrative of a resilient labor market that had supported expectations for tighter Federal Reserve policy.
The unemployment rate ticked down to 4.2%, but CryptoSlate points out this was driven by roughly 720,000 people exiting the labor force, pulling the participation rate to 61.5% from 61.8%. A separate household survey cited in the report showed employment falling by 507,000, reinforcing the view that the headline jobless rate may be masking a softer underlying trend. Job gains were also narrowly concentrated, with education, health care and social assistance adding 69,000 positions — more than the total net gain — while leisure and hospitality payrolls fell and government hiring rose by only 8,000.
BlackRock’s chief investment officer of global fixed income, Rick Rieder, was quoted by CryptoSlate describing the report as “more fizzle than fireworks,” characterizing the labor market as one that is cooling gradually rather than deteriorating sharply. Tuan Nguyen, an economist at RSM US LLP, told CryptoSlate that the data gives the Federal Reserve room to hold rates steady at its July meeting, adding that economic headwinds appear to be subsiding.
Why This Matters for Everyday Crypto Holders
For retail investors watching Bitcoin ETFs as a proxy for institutional appetite, the flow reversal is notable mainly because of its size relative to the prior drawdown. CryptoSlate reports that even after Thursday’s $223 million inflow, cumulative ETF withdrawals since early May stand near $8.5 billion, meaning a single day of buying only modestly offsets weeks of selling pressure.
The jobs data also fed into broader market repricing. CryptoSlate notes that traders have pulled back from fully pricing a 25-basis-point rate hike in October, though expectations for an additional increase by year-end persist. The two-year Treasury yield slipped to about 4.11%, the dollar weakened, and gold extended a rebound — moves consistent with markets treating the labor report as a signal that the Fed has less urgency to tighten further. Because higher rates typically dampen demand for speculative assets like Bitcoin by making cash and short-term government debt more attractive, easing rate-hike expectations gave BTC room to recover after what CryptoSlate describes as a selloff that had forced leveraged traders out of positions.
Still, the report cautions that Fed Chair Kevin Warsh has not given a clear signal on the timing of future moves and continues to stress the goal of returning inflation to the 2% target, with tariffs and the recent US-Iran war cited as ongoing sources of price pressure. Wage growth remaining above target inflation levels means the central bank could still prioritize price stability if inflation proves persistent, tempering how much relief the labor data ultimately provides.
What Analysts Are Watching Next
CryptoSlate cites data from Bitwise Europe showing investor stress remains elevated, with only 47% of Bitcoin’s circulating supply currently held at a profit and aggregate paper losses across holders estimated at about $281 billion. The same analysis noted that realized losses have shrunk with each successive leg lower, which Bitwise Europe suggested could indicate that selling pressure is beginning to ease near current price levels.
The firm also flagged options positioning as a risk to watch, noting that negative gamma concentrations near $60,000 and $55,000 could amplify downside moves if Bitcoin loses momentum, while positive gamma near $62,000 might help stabilize price action if buyers stay engaged. Separately, CryptoSlate references 10x Research’s observation that Bitcoin has climbed back above its seven-day moving average — a short-term positive sign — while still trading below its 30-day moving average, meaning the broader trend remains under pressure. Exchange-flow data also showed heavier transfers to trading platforms, including from larger holders, coinciding with this week’s dip below $58,000, which CryptoSlate says could add to available supply if market conditions stay fragile.
Hype Check
Claim: Headlines suggest Bitcoin ETFs are seeing a major return of institutional demand after a weak jobs report sparked a price rebound. Reality: CryptoSlate’s figures show a single strong inflow day of $223 million, which follows a 10-day, $2.73 billion outflow streak and sits within a broader context of nearly $8.5 billion in net withdrawals since early May; Bitcoin’s rebound above $62,000 also follows a fresh 21-month low below $58
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Researched with AI assistance, fact-checked and edited by a human. Not financial advice.