Bitcoin spot exchange-traded funds posted net outflows for a second straight day, snapping a flow of inflows that had lasted for the past seven trading sessions.

On July 27, blockchain media outlet Decrypt reported that a total of $465 million left the products over two days, with most of the outflows coming from BlackRock’s IBIT.

Based on data compiled by Farside Investors, bitcoin spot ETFs recorded net outflows of $240 million on July 25 and $225 million the previous day. About $1 billion had flowed in over the preceding seven trading sessions, but about half of that was offset by the latest withdrawals. In the earlier inflow stretch, inflows peaked at $227 million on July 20 alone, but demand then cooled rapidly.

The reversal in flows was most visible in IBIT. IBIT logged nearly $415 million in outflows over two days. On a weekly basis, however, the overall ETF market still stayed in net inflow territory. Despite the two-day outflows, last week’s total net inflow came to about $34 million thanks to three earlier strong inflow days.

The market is interpreting the move as a short-term adjustment in funds. HashKey analyst Tim Sun (팀 선) said institutions moved to a “strategic phased allocation of funds” near a temporary price bottom, but it showed a lack of a solid foundation to support a sustained uptrend. He pointed in particular to IBIT’s heavy weighting, saying large outflows from a highly liquid product that institutions mainly use to increase exposure or hedge signalled they were actively reducing short-term bitcoin exposure.

Macroeconomic uncertainty was cited as a backdrop. Renewed tensions between the United States and Iran have pushed oil above $100 a barrel, reviving inflation worries. Analysts also said the bond market has priced in a higher probability of a U.S. Federal Reserve rate hike later this year, increasing pressure on risk assets broadly. Sun said the move was not limited to crypto, adding that inflows into U.S. equity and bond funds have also stalled.

Sentiment in money markets remains mixed. Jack Pan (잭 팬들), head of research at Grayscale, said bitcoin may have already formed a bottom if the Fed delays additional rate hikes. He dismissed the so-called “four-year cycle” view that anticipates a deeper low in September or October.

A key near-term variable is the Fed’s next rate decision. The Fed is set to decide rates on July 29, and the CME FedWatch Tool currently reflects a 34 percent probability of a 25 basis point hike. A warning also emerged that if the rate outlook turns more hawkish, bitcoin could face additional outflows and downward pressure.

Stephen Bundtke (스티븐 분트케), head of strategy and revenue at Algoz Technologies, also said last week’s trend had reversed. He said inflation and rate concerns returned and investors shifted back into cash after U.S. President Donald Trump signalled a resumption of responses to Iran and oil rose above $100 again following Houthi attacks near the Red Sea.

He maintained a somewhat optimistic view on the outlook. Bundtke said many investors see current price levels as “close to the cycle bottom,” and that overall sentiment is optimistic. With a halt to fighting between the United States and Iran extending into a third day, he said if clashes subside oil could stabilise around $80 and inflation worries could ease, allowing ETF inflows and bitcoin prices to gradually recover. He added that August is typically a “boring month” in the crypto market and that investors should not expect major volatility immediately.

The net outflows showed that bitcoin spot ETF flows are reacting more sensitively to macro factors than to crypto-specific issues. Concentrated outflows from a large product such as IBIT also reaffirmed that a shift in institutional money can have a broad impact on the market.