Bitwise Spots the Bottom, ETFs Catch a Bounce, and Bitcoin Refuses to Sit Still 🚀

Bitcoin traded in a tight range near the upper end of its recent consolidation, holding above key support as spot exchange-traded funds posted their first sustained net inflows in weeks and a prominent asset manager declared the worst of the drawdown behind the market. The recovery in flows tracked a softer-than-expected U.S. Consumer Price Index print, which trimmed Treasury yields and pushed risk assets higher across the session.

Matt Hougan, chief investment officer at Bitwise, said the firm views the recent move as the cycle bottom, citing improving liquidity conditions, a reset in derivatives positioning, and steady on-chain accumulation. Hougan pointed to record ETF assets under management, continued corporate treasury allocations, and a doubling of stablecoin market capitalization since the last local low as evidence that structural demand for Bitcoin ($BTC) remains intact.

On the adoption front, Japanese spot Bitcoin ETFs continued to trade at a premium to underlying net asset value, underscoring retail demand that has persisted even as domestic regulators weigh tighter distribution rules. In the United States, combined spot Bitcoin ETF assets have climbed above $130 billion, with several issuers expanding in-kind creation and redemption features to deepen institutional access.

The macro backdrop offered additional support, with a softer core CPI reading reinforcing market expectations that the Federal Reserve will begin its cutting cycle later this year. The Japanese yen weakened against the U.S. dollar following the inflation report, adding to the carry-trade dynamics that have historically benefited risk assets in periods of cross-border yield divergence.

Ethereum ($ETH) tracked Bitcoin's lead, with several issuers filing for combined spot and staking products as U.S. regulators signaled openness to liquid staking structures. On-chain data showed a steady increase in validator participation and a decline in exchange-held supply, suggesting that longer-term holders continue to accumulate despite muted price action in the derivatives market.