- Bitcoin inflows ended with $157 million weekly outflows amid renewed tariff wars
- QCP Capital projected a range-bound price action within $100k-$110k
The U.S Spot Bitcoin [BTC] inflow streak that began in mid-April came to an abrupt end last week after outflows worth $157 million. Over the past six weeks, these products have attracted over $9.6 billion in weekly inflows.
Source: Soso Value
Over the same period, BTC recovered from $84k to over $110k on the charts. However, the outflows seen last week dragged BTC below $110k again.
Tariff fears reverse BTC ETF flows
Reacting to the reversal of the Spot BTC ETFs flows, CoinShares’ Head of Research James Butterfill said,
“The week began with strong inflows for Bitcoin, this reversed mid-week following the New York Court decision to declare US tariffs as illegal, ending the week with minor outflows of US$8m.”
The ETF outflows were led by Ark 21Shares and Fidelity funds.
Source: CoinShares
Last week, President Donald Trump claimed that China violated the preliminary trade arrangement made in May. As a result, the U.S doubled Chinese steel imports to a 50% tariff and expanded tech sanctions.
In response, on 2 June, China dismissed the accusations but warned of taking measures to protect its interests. This warranted investor concerns over tariff wars in June.
Although there were reports of potential phone talks on the issue this week, the macro headline may remain a key factor for Bitcoin going forward.
Commenting on the macro outlook, crypto trading firm QCP Capital stated,
“Tariff tensions will likely drive the macro narrative through June, with major policy decisions expected only after July 8. Until then, the market may stay on pause.”
The firm painted a risk-off outlook and added,
“Volatility on the frontend is compressing, risk reversals are normalising, and perp funding has gone flat. These shifts point to muted price action ahead.”
According to QCP, BTC may remain range-bound in $100k-$110k.
Meanwhile, Glassnode highlighted that profit-taking may stall the rally. Especially if new buyers fade while other traders begin locking in more gains.
“If new demand holds, the BTC rally could continue. If it fades, the lack of momentum support and rising profit-taking could lead to short-term consolidation, worth monitoring cohort rotation.”
Source: Glassnode
At press time, demand from new buyers was significant (green), while profit-taking was relatively modest.
Overall, Bitcoin appeared to be in great condition, despite the risk of profit-taking. However, any macro-driven market rout could accelerate the sell-offs.
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