Bitcoin ETFs Snap Outflow Streak with $854M Inflow as Weak Jobs Data Cools Fed Bets

US-listed spot Bitcoin exchange-traded funds (ETFs) recorded a net inflow of $853.5 million for the week ending August 7, marking their strongest weekly performance since mid-April. The substantial intake reverses a prolonged eight-week streak of net outflows that had seen more than $8.2 billion exit the funds.

BlackRock Dominates Renewed Inflows

The vast majority of the new capital was concentrated in two leading funds. BlackRock's iShares Bitcoin Trust (IBIT) alone attracted approximately $694 million, accounting for over 80% of the week's total net inflow.

Fidelity's Wise Origin Bitcoin Fund (FBTC) was a distant second, drawing in about $116.4 million. The renewed interest in Bitcoin ETFs coincided with inflows into other risk-sensitive assets, such as semiconductor ETFs and high-yield bonds, suggesting a broader improvement in market risk appetite.

Weak Jobs Report Fuels Risk-On Mood

The primary macroeconomic catalyst for the shift in sentiment was the US July nonfarm payrolls report released on August 7. The data showed an unexpected loss of 23,000 jobs, starkly contrasting with market expectations for a gain of 80,000 to 85,000. Furthermore, figures for May and June were revised downward by a combined 103,000.

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Following the report, the probability of a September interest rate hike by the Federal Reserve, as indicated by CME interest rate futures, dropped sharply from 54.7% to 44.0%. This easing of monetary policy expectations provided a significant tailwind for risk assets, including cryptocurrencies.

Price Action and Key Levels to Watch

In the wake of the news, Bitcoin's price has been consolidating above the $65,000 level, closing the week with a gain of approximately 2.8%. Market participants are now closely watching whether this institutional return is sustainable or merely a temporary reaction.

Analysts suggest that the continuity of inflows into BlackRock's IBIT will be a critical indicator of institutional conviction. A failure to hold the $64,000 support level or a return to net outflows in the coming week could be viewed as a negative signal for the nascent recovery.