Bitcoin ETF ends eight consecutive weeks of net outflows, and the escalating situation in the Middle East dragged BTC back to $6.3 million

Comparing news, risk aversion in the market heated up due to the mutual air strikes between the US and Iran over the weekend. Bitcoin fell more than 1% since 00:00 UTC on July 13, and once fell back to around $63,000.

Meanwhile, Brent crude oil futures rose more than 3%, approaching $79 per barrel. The market is concerned that the blockage of shipping in the Strait of Hormuz will push up energy prices and inflation, thereby weakening the room for the Federal Reserve to cut interest rates and putting pressure on risky assets such as crypto.

Taran Dhillon, head of digital assets at Kula, said that the crypto market will have a tug-of-war between macroeconomic data and the geographical situation in the Middle East this week, and the upcoming US CPI and PPI data will affect the market's expectations of the Federal Reserve's interest rate path.

However, spot Bitcoin ETFs and Ethereum ETFs have ended eight consecutive weeks of net capital outflows, indicating a recovery in institutional demand. Furthermore, the continued promotion of the “CLARITY Act” is expected to further improve digital asset regulatory expectations and provide support to the market.