AI checked its bags, and crypto got the room key 🧳

US spot Bitcoin exchange-traded funds extended their inflow streak to six consecutive trading days, pulling in $203.1 million and lifting the six-day total to roughly $930 million, the longest such streak since April. The renewed demand helped $BTC push above $67,000 before settling, while the Crypto Fear & Greed Index recovered from "extreme fear" to "fear." Since their January 2024 launch, US spot Bitcoin ETFs have drawn $51.8 billion in cumulative net inflows and now hold $80.9 billion in net assets, though year-to-date net flows remain down $4.84 billion. Analysts cited the $65,000–$65,500 range as a level $BTC needs to defend to support a sustained bullish breakout.

The inflow streak coincided with a broader rebound in digital assets and crypto-linked equities, with Coinbase, American Bitcoin and Cipher Digital each posting double-digit percentage gains. Sentiment improved after US Treasury Secretary Scott Bessent told reporters lawmakers were at the "1-yard line" on the CLARITY Act, legislation that would create a regulatory framework for digital assets. FRNT Financial CEO Stephane Ouellette added that cooling enthusiasm for AI equities and a more constructive interest-rate outlook could help drive a Bitcoin breakout, citing the Philadelphia Semiconductor Index, which fell more than 20% from its recent high to enter a technical bear market.

The shift in speculative capital comes after nearly two years in which AI-related stocks dominated investor attention, lifting indices including the SOX well above year-ago levels. As investors grow more selective between AI firms with sustainable earnings and those riding the hype cycle, some market participants are watching whether capital begins rotating back into digital assets.

Regulatory progress, recovering ETF demand and easing AI momentum have combined to give crypto its most constructive backdrop in months, though analysts cautioned it is too early to declare a lasting rotation. With $BTC hovering near $67,000 and the CLARITY Act advancing in Congress, the next trading sessions are likely to test whether the renewed appetite holds.