Bombshell Drop in U.S. Bitcoin ETF Inflows: Fed Fumbles and Trump's Budget Bill Shake Crypto

Hang on to your hats, folks! The U.S. spot Bitcoin ETFs just saw a jaw-dropping 65% nosedive in weekly inflows. Why? Blame it on the Fed's teasing with rate cuts and Trump's blockbuster budget bill, which totally killed the party vibe for investors.

Get this: last week, the 12 spot Bitcoin ETFs only pulled in $769.6 million, a brutal fall from the $2.22 billion they scored the week before. That's according to the numbers crunchers at SoSoValue.

The rollercoaster started with a measly $102.14 million in net inflows on Monday, then plummeted with a massive $342.25 million in outflows on Tuesday. But wait, it got wilder midweek with a comeback of $407.78 million on Wednesday and a whopping $601.94 million on Thursday—the biggest single-day haul since May. And guess what? Markets shut down on Friday for the U.S. Independence Day bash.

Who's leading the pack? BlackRock’s IBIT snagged $336.8 million, with Fidelity’s FBTC hot on its heels at $248.4 million, and ARK 21Shares’ ARKB not far behind with $160 million.

Other players like Bitwise’s BITB, Invesco’s BTCO, Franklin Templeton’s EZBC, Valkyrie’s BRRR, and VanEck’s HODL, plus some pocket change into Grayscale’s new BTC funds, chipped in another $109.2 million. But, Grayscale’s old-school GBTC coughed up $84.9 million in net outflows, putting a dent in the total.

What's behind this wild ride? Profit-taking, baby! As Bitcoin flirted with its all-time high near $111,960, investors locked in their gains before the holiday weekend, which totally threw a wrench in the short-term flows into these crypto investment beasts.

Oh, and don't forget the macro scene—June's U.S. jobs report smashed expectations with nonfarm payrolls soaring by 147,000, way above the 110,000 everyone was betting on.

That report totally tanked hopes for a July rate cut, sending investors scrambling to rejig their Bitcoin exposure.

Meanwhile, Trump's One Big Beautiful Bill, a monster tax and spending package, sailed through the Senate on July 1. But here's the kicker: it left out the crypto-friendly tax provisions that pro-crypto lawmakers had been pushing for—like better treatment for staking and mining. Total bummer for the crypto world hoping for some regulatory love and tax breaks.

Right after the Senate vote, Bitcoin took a nosedive to $105,000 on July 2 as investors freaked out over the bill's impact on crypto. But hold up, it bounced back over $110,000 the next day when President Trump dropped a new trade deal with a major ASEAN partner, putting a smile back on investors' faces.

As we speak, Bitcoin (BTC) is hanging tough at $109,000, barely moving and just 2.5% shy of its all-time high.

Despite the U.S. tariff drama, the crypto wizards are still all in on Bitcoin's future. Standard Chartered is sticking to its guns with a Q3 target of $135,000 and a year-end forecast of $200,000, thanks to the insatiable appetite from big institutions and a tight supply on exchanges.

And if you thought that was bullish, listen up—Bernstein and BitMEX’s Arthur Hayes are throwing out even wilder numbers, between $200,000 and $250,000 by year-end, depending on ETF inflows and the global cash flow situation.

Disclosure: Just a heads up, this isn't investment advice. We're here to educate, not to tell you where to throw your cash.