Donald Trump’s threats of military action against Iran and global tariff policies immediately pressured Bitcoin, driving prices below the $65,000 threshold. Asset managers reacted swiftly to the macroeconomic jitters. According to July 24 data from on-chain analytics account @lookonchain on X, Bitcoin ETF products recorded daily net outflows of 3,507 BTC, equivalent to $225.56 million in just a single day.
However, on the very same day Bitcoin faced heavy redemption pressure, a sharp divergence emerged across the market. Ethereum ETFs proved resilient to the panic, continuing to draw fresh capital with 12,522 ETH in inflows valued at $23.32 million.
Capital Rotation Amid Market Panic
As the crypto market felt the squeeze from escalating political tensions between the United States and Iran, these multi-million-dollar capital movements highlighted an emerging pattern. Rather than fleeing entirely into cash over tariff anxieties, institutional investors executed a strategic maneuver. The divergence in ETF flows provides clear evidence of an institutional capital rotation away from Bitcoin and into the Ethereum network.
How Weekly Figures Hold Up
Although daily numbers indicate selling pressure, the seven-day perspective offers a more balanced outlook for the market. Bitcoin ETFs actually maintained positive net inflows, adding 6,063 BTC worth $389.93 million over the past week. The single-day quarter-billion-dollar outflow only erased a portion of those inflows, falling short of turning the weekly trend negative.
Ethereum, for its part, continued to build momentum throughout the week. Ethereum ETFs recorded solid gains, taking in 99,239 ETH and adding $184.78 million in liquidity over seven days. This consistent accumulation underscores that institutional capital continues to flow into the ecosystem with conviction, despite geopolitical headwinds weighing on the market leader.
Decoupling Risk Profiles of the Two Assets
While Bitcoin absorbed negative sentiment from global politics and armed conflict threats, Ethereum captured an influx of institutional funds. This divergence illustrates that major capital allocators are beginning to assign distinct risk profiles to the top two crypto assets. For day traders closely watching Bitcoin drop below $65,000, the shifting fund flows offer a crucial takeaway: panic in one corner of the market often opens the door to opportunity in another.
Reported via @lookonchain on X.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
