Bitcoin Holds Steady Near $64K Amid ETF Outflows and Awaited Crypto Policy Report

Bitcoin? (BTC) registered a modest 0.4% gain over the last 24 hours, trading around $63,953 on July 29, 2026. This slight uptick occurred amidst a complex market environment, where a supportive macroeconomic signal from the U.S. Federal Reserve was counterbalanced by persistent outflows from Bitcoin? spot Exchange?-Traded Funds (ETFs) and a broader slowdown in trading volume?.

Fed's Dovish Stance Provides Macro Tailwinds

The primary catalyst for Bitcoin?'s subdued but positive sentiment on July 29, 2026, was the U.S. Federal Reserve's decision to hold interest rates steady at 3.50%-3.75%. The Fed also adopted a more dovish than anticipated stance on its future rate trajectory, which generally provides a tailwind for risk-on assets like cryptocurrencies. This move led to a softening of Treasury yields, encouraging some reallocation of capital into digital assets.

Institutional Caution Evident in ETF Outflows

Despite the favorable macroeconomic backdrop, Bitcoin? spot ETFs continued to experience significant redemptions. On July 29, 2026, these funds recorded a $49.75 million net outflow, marking the fourth consecutive day of redemptions. Over this four-day period, total outflows from Bitcoin? spot ETFs reached $526 million. BlackRock's IBIT, a prominent Bitcoin? ETF, notably experienced the largest single-day outflow at $54.83 million on July 29, highlighting a continued institutional hesitancy to accumulate Bitcoin? through these vehicles.

Ethereum? ETFs See Inflows Amidst Capital Rotation

In contrast to Bitcoin?'s outflows, Ethereum? ETFs have been attracting fresh capital. For the week ending July 29, 2026, Ethereum? ETFs saw inflows of 37,959 ETH, marking their third consecutive week of positive inflows. This trend suggests a potential rotation of capital within the crypto asset class, with investors exploring alternatives. Further underscoring this shift, Morgan Stanley expanded its digital asset offerings on July 27, 2026, by launching Ethereum? and Solana staking? ETPs.

Anticipation Builds for White House Crypto Policy Report

Looking ahead, market participants are keenly awaiting the release of the White House's President's Working Group on Digital Asset Markets crypto policy report. Scheduled for July 30, 2026, this report is expected to outline significant regulatory and legislative recommendations that could shape the future of the digital asset industry. Among the anticipated proposals is the idea of a strategic Bitcoin? reserve, which could have profound implications for Bitcoin?'s role in the broader financial system and institutional adoption.

Market Dynamics: Low Volume? and Derivatives Squeeze

Adding to the nuanced market picture, July's Bitcoin? spot trading volume? is on track to be its weakest since November 2023, according to K33 Research on July 29, 2026. This indicates a broader summer liquidity? slowdown, which can amplify price movements due to reduced market depth. Bitcoin?'s intraday movement on July 29 was also influenced by a squeeze in the derivatives market. Elevated short positioning ahead of the Federal Open Market Committee (FOMC) announcement led to liquidations when the price breached key resistance levels, contributing to the modest price gain.

Bitcoin? Key Metrics (July 29, 2026)

What This Means for Traders and Investors

Bitcoin?'s current market posture is characterized by conflicting signals. While the Federal Reserve's dovish stance offers a supportive macro environment, the sustained outflows from Bitcoin? spot ETFs suggest institutional caution. The upcoming White House crypto policy report on July 30, 2026, stands as a critical near-term catalyst that could provide regulatory clarity or introduce new strategic initiatives, potentially influencing market sentiment and institutional flows significantly. Traders and investors should monitor these developments closely, alongside volume? trends, to gauge Bitcoin?'s next directional move. For those interested in understanding the fundamentals, exploring What is Bitcoin? can provide valuable context, and for practical steps, guides on How to buy Bitcoin? are available.

FAQ

Why are Bitcoin? spot ETFs experiencing outflows despite a dovish Fed?

While the Fed’s dovish stance reduces macroeconomic headwinds, institutional investors may remain cautious due to regulatory uncertainty, profit-taking, or rotation into other assets like Ethereum?. ETF flows often reflect nuanced positioning beyond broad market sentiment.

How significant is the White House crypto policy report for Bitcoin??

The report is highly significant as it may propose new regulatory frameworks and strategic initiatives, such as a Bitcoin? reserve, which could enhance Bitcoin?’s legitimacy and institutional adoption over the medium term.

What does low July trading volume? mean for Bitcoin?’s price action?

Lower volume? typically signals reduced liquidity?, which can increase volatility and make price moves less reliable. It also suggests less active participation, which may delay strong directional trends until volume? recovers.

Is the rotation into Ethereum? ETFs a sign of Bitcoin? weakness?

Not necessarily. Capital rotation within crypto is common as investors seek diversification or exposure to different use cases. Ethereum?’s recent inflows may reflect growing interest in staking? and DeFi? rather than outright Bitcoin? weakness.

For readers comparing crypto exposure, eToro is one platform to review alongside fees, spreads and local eligibility.