Bitcoin retreated on Thursday, sliding 1.8% to $63,940 as of 15:02 CEST, after a brief push above $65,000 in the prior session failed to attract sustained buying. The digital asset traded in a range of $63,833 to $65,486, reflecting ongoing uncertainty despite a two-day rebound in U.S. spot ETF flows.
The latest price action underscores a fragile recovery. While headline inflows into U.S. spot Bitcoin ETFs totaled $288.8 million over Tuesday and Wednesday, the rally proved short-lived. Over the three sessions ending Wednesday, net flows were actually negative by $135.9 million, indicating that the broader trend remains weak.
BlackRock's iShares Bitcoin Trust (NASDAQ:IBIT) emerged as the dominant force, contributing $219.7 million of the two-day inflow—a full 76% of the total. On Wednesday alone, only three funds recorded inflows, compared to six on Tuesday, highlighting a narrowing of participation. Analysts warn that a strong total figure may mask underlying softness if IBIT remains the sole driver.
The market's bounce followed a cooler-than-expected U.S. inflation report. June consumer prices fell 0.4%, with core prices unchanged for the month, while producer prices also declined 0.3%. This data tempered expectations of a hawkish Federal Reserve, briefly boosting risk assets. However, sellers quickly reasserted control, knocking Bitcoin back below the $65,000 threshold.
On-chain data from Glassnode suggests that long-term holders have stepped back from capitulation, with buyers emerging near the June lows. Yet overall spot demand has quieted since the market stabilized. Glassnode estimates that the average price paid by new buyers is approximately $69,000, which it identifies as the next clear resistance zone. A failure to break above that level could keep Bitcoin in its current recovery range.
Nicolai Sondergaard, research analyst at Nansen, noted that the key question is whether the recent ETF inflows represent a sustained shift or merely a one-day aberration. "Sellers have backed off more quickly than buyers are coming in," he said. "It's progress, but not a full signal yet."
Investors should be aware that ETF net flows are not equivalent to daily exchange purchases, as U.S. crypto ETPs can engage in in-kind share creation or redemption. Additionally, any new inflation print or significant market move could reignite selling pressure, particularly if the concentrated inflows from a single fund fail to broaden.
Looking ahead, the stakes are high for Thursday's U.S. session. A strong total inflow will carry limited weight if IBIT remains the only fund posting gains. The broader market will be watching for signs of genuine breadth in demand to confirm that the recovery has legs.
