Several 21Shares and Grayscale products also recorded withdrawals.
The Fear & Greed index, which measures investor sentiment, stood at 28 out of 100 on July 30, signaling a continued fear zone but an improvement from extreme fear a month earlier, CoinTribune reported.
Market volatility around Bitcoin has been influenced by the July options expiry and institutional month-end rebalancing, causing localized price swings.
Macroeconomic factors such as a hawkish Federal Reserve stance, rising U. S.
Treasury yields, and a stronger dollar have exerted downward pressure on Bitcoin prices, according to TradingKey.
Spot Bitcoin ETF flows indicate a shift towards net outflows or decelerating inflows, suggesting institutional accumulation may have plateaued as fund managers rebalance portfolios.
"This institutional selling, while structural in nature, lacks the aggressive conviction of a fundamental bearish shift, pointing instead to disciplined capital management," TradingKey reported.
On-chain data showed increased exchange inflows from short-term holders, reflecting reduced risk tolerance among some retail-related investors.
The perpetual futures market’s cooling funding rates indicate liquidation of speculative long positions, contributing to short-term price softness.
Despite these fluctuations, the long-term narrative of Bitcoin as a store of value remains intact as investors await labor market and inflation data that could influence Federal Reserve policy and digital asset liquidity.
