Bitcoin ETFs see inflows as $2.3B stablecoin reserves fall

US spot Bitcoin ETFs posted two consecutive weeks of net inflows totaling about $273 million through July 17. The first week brought $197.4 million and the second $75.67 million, reversing eight prior weeks that saw investors withdraw more than $8 billion. BlackRock’s iShares Bitcoin Trust recorded roughly $204 million of the latest weekly intake.

Exchange stablecoin balances fell by roughly $2.3 billion over the past 30 days, according to on-chain analytics firm CryptoQuant: about $1.55 billion left Binance and about $786 million left Bybit. Traders commonly use stablecoins such as USDT and USDC held on exchanges to buy Bitcoin without moving fiat through banks. A decline in those balances reduces ready capital available on exchanges.

Derivatives positioning shows concentrated leverage. Analytics platform Alphractal reported short-side liquidity mainly between $82,000 and $84,000, while long positions cluster around $55,000 to $57,000. The concentration of leveraged longs near $57,000 could trigger a wave of forced liquidations if selling pushes the price through that level.

Macroeconomic and geopolitical developments have added pressure on markets. U.S. Central Command reported that American forces carried out strikes on Iranian targets near the Strait of Hormuz on July 20, targeting military and maritime systems. Shipping through the strait slowed and Brent crude rose above $91 a barrel.

Simon-Peter Massabni, head of business development at XS.com, described the market as facing “opposing macroeconomic forces”, with softer U.S. inflation data easing policy concerns while higher oil prices could reverse that trend. CryptoQuant analyst Darkfost noted Bitcoin spent nearly 165 days testing the lower portion of the $60,000–$65,000 band. Independent analyst Michael Van de Poppe wrote that low volatility can help establish support but added that breaking and holding $65,000 is a prerequisite for a broader rally; failing to hold $61,000 would likely lead to a retest of the $50,000 range.

BIT Official reported that the 21-day moving average of its Greed & Fear Index has turned upward, a pattern the firm has previously associated with tactical market bottoms. BRN Research, in an emailed statement, described the $62,000–$65,000 supply band as the current proving ground and said that a return to negative institutional flows could leave the market exposed to the concentrated liquidation zone near $57,000.

Over the two weeks of inflows, Bitcoin traded around $64,000. Market participants and analysts are watching ETF flows, exchange stablecoin balances and derivatives positioning for signs of sustained buying or renewed selling pressure.