Fed rate-hike fears fade and crypto ETF inflows return — buy the bitcoin breakout
A very weak June jobs report took the pressure off interest rate hikes, which historically boosts riskier assets like crypto. With institutional money flowing back into Bitcoin ETFs and large investors aggressively buying, Bitcoin looks primed to continue its rebound.
Idea
The June jobs report was a shocker — only 57,000 jobs were added versus expectations of 115,000, which pushed traders to abandon fears of near-term interest rate hikes. Lower-for-longer interest rates are highly favorable for speculative assets like cryptocurrency, because cash earns less and investors seek growth elsewhere. Simultaneously, institutional money is rotating back into the space, with U.S. spot Bitcoin ETFs snapping a 10-day outflow streak with a massive $222 million inflow. Even more telling, large cryptocurrency holders ('whales') bought up $16.7 billion worth of Bitcoin while ETFs were bleeding earlier in June. When big money absorbs selling pressure right as macroeconomic headwinds clear, it often sets the stage for a sustained rally.
What happened since
| Symbol | Dir | T+1 | T+5 | T+20 |
|---|---|---|---|---|
| BTC | LONG | +0.80% ✓ | +0.16% ✓ | — |
Price change since publication · updated Jul 11