Bitcoin broke $66,000 on the 22nd—its highest level in one month—driven by institutional capital inflows through US spot ETFs, but retreated to the $65,000 range by the 24th as fund flows reversed and geopolitical risks intensified. The cryptocurrency started the week at $63,000 on the 20th, recovered $65,000 on the 21st, then surged past $66,000 on the 22nd morning before losing momentum. US spot Bitcoin ETFs recorded seven consecutive trading days of net inflows totaling approximately $1.09 billion from the 14th through the 22nd, but this streak ended on the 23rd with $225.1 million in net outflows—including $202.5 million from BlackRock's IBIT alone. Trump's warning to Iran over Houthi attacks on Saudi commercial vessels escalated US-Iran tensions, pushing Brent crude above $100 per barrel and raising inflation concerns that shifted Federal Reserve rate expectations.
US Spot Bitcoin ETFs Record Seven-Day Inflow Streak Before Reversal
US spot Bitcoin ETFs attracted $226.8 million in net inflows on the 20th, followed by $203.2 million on the 21st and an additional $69.1 million on the 22nd. The seven consecutive trading days of inflows from the 14th through the 22nd brought approximately $1.09 billion into the market after a $424.7 million outflow on the 13th. This institutional capital influx supported Bitcoin's climb from the $63,000 range to over $66,000 by the 22nd morning—approximately 15% above early-month lows and the highest level in one month.
The inflow streak ended on the 23rd when $225.1 million exited US spot Bitcoin ETFs. BlackRock's IBIT, which had led inflows during the rally, recorded $202.5 million in outflows alone on the 23rd. Bitcoin's 30-day trading volume remained at 62% of the annual average according to K33 Research, while CME Bitcoin futures open interest dropped to its lowest level since 2023.
Trump Iran Warning Pushes Brent Crude Above $100 Per Barrel
Donald Trump issued a warning targeting Iran following Houthi rebel attacks on Saudi Arabian commercial vessels. The statement reignited US-Iran tensions and drove Brent crude above $100 per barrel, reviving inflation concerns. CME FedWatch data showed the probability of a 0.25 percentage point Federal Reserve rate hike this month jumped from approximately 12% one week earlier to nearly 40%.
The shift in rate expectations occurred as oil prices surged, creating a dual headwind for risk assets. Bitcoin's advance stalled below $68,000—a price level corresponding to the average purchase price of investors who bought over the past five months. The combination of ETF outflows and rising rate hike probabilities weakened upward momentum that institutional inflows had generated earlier in the week.
Bitcoin Tests 21-Week Moving Average at $64,073
Bitcoin's 21-week simple moving average (SMA) sits at $64,073. The cryptocurrency fell from over $66,000 on the 22nd to the low $65,000 range by the 24th, approaching this technical support level. Holding above $64,000 would frame the recent decline as consolidation within an intact rebound from early-month lows. A break below $64,000 would signal weakening momentum in the rally that began earlier this month.
The $68,000 level represents the next resistance zone, where investors who purchased over the past five months would reach breakeven. Bitcoin's ability to maintain support above the 21-week SMA while attracting renewed buying interest will determine whether the cryptocurrency can challenge $68,000 or continues consolidating recent gains.
FAQ
What caused Bitcoin to retreat from $66,000 on the 23rd?
US spot Bitcoin ETFs recorded $225.1 million in net outflows on the 23rd, ending a seven-day inflow streak. BlackRock's IBIT alone saw $202.5 million exit. Simultaneously, Trump's warning to Iran over Houthi attacks on Saudi vessels pushed Brent crude above $100 per barrel, raising inflation concerns and driving Federal Reserve rate hike probabilities from approximately 12% to nearly 40% within one week.
How much institutional capital flowed into Bitcoin ETFs before the reversal?
US spot Bitcoin ETFs attracted approximately $1.09 billion in net inflows over seven consecutive trading days from the 14th through the 22nd. Specific daily inflows included $226.8 million on the 20th, $203.2 million on the 21st, and $69.1 million on the 22nd. This institutional buying supported Bitcoin's climb from $63,000 on the 20th to over $66,000 by the 22nd morning.
What technical level is Bitcoin testing after the decline?
Bitcoin is testing its 21-week simple moving average at $64,073. The cryptocurrency fell from over $66,000 on the 22nd to the low $65,000 range by the 24th. Holding above this $64,000 support level would indicate the recent decline is consolidation within an ongoing rebound, while a break below would suggest weakening rally momentum.
