U.S. stocks closed mixed on Tuesday, July 1st, hovering near historic highs. Federal Reserve Chair Jerome Powell, who had recently faced intense criticism from former President Trump, finally addressed the pressure directly. He stated that without the impact of tariffs, the Fed would have already cut interest rates. Meanwhile, U.S. spot Bitcoin ETFs have seen 15 consecutive days of net inflows, and the SEC is accelerating its approval of crypto ETFs. Could this combination push Bitcoin, already near its all-time high, to break new records?
Powell Suggests Tariffs Delayed Rate Cuts
The number of job openings in the U.S. reached a new high since November, primarily driven by the leisure and hospitality sectors, while the number of layoffs declined. Fed policymakers have consistently described recent labor market conditions as robust.
The U.S. government is set to release the June jobs report on Thursday, which is expected to show a slowdown in non-farm payroll growth and a rise in the unemployment rate.
Speaking at a forum hosted by the European Central Bank in Sintra, Portugal, Powell directly addressed recent political pressure. He indicated that without the expanded use of tariffs under the Trump administration, the Federal Reserve would have already implemented interest rate cuts. However, Powell did not rule out the possibility of a rate cut at the end of July, emphasizing that the Fed continues to make decisions meeting by meeting based on incoming data.
According to the CME FedWatch Tool, traders widely anticipate another rate cut by mid-September, with potential additional cuts in October and December. This outlook has shifted from earlier expectations of only two rate cuts before the end of the year.
Spot Bitcoin ETFs See 15 Straight Days of Inflows as SEC Accelerates Crypto ETF approvals
With Bitcoin's price less than 5% away from its all-time high, U.S. spot Bitcoin ETFs have extended their streak of net inflows to 15 consecutive days, totaling $4.7 billion.
Nate Geraci, President of ETF Store, highlighted the significance of this trend: "Approaching $5 billion in new capital. Not $5 billion this year—that's $5 billion over the past 15 trading days."
Many experts had previously projected that U.S. spot Bitcoin ETFs would attract a maximum of $5 billion in their first year. The recent surge has far exceeded those expectations.
15 straight days of inflows into spot btc ETFs…
Approaching $5bil in new $$$.
Not $5bil this year.
That’s $5bil over past 15 trading days.
— Nate Geraci (@NateGeraci) July 1, 2025
The U.S. Securities and Exchange Commission (SEC) has recently accelerated its approval of cryptocurrency ETFs. Following the first staked Solana ETF, the "REX-Osprey Solana and Staking ETF," the agency has now approved Grayscale's Digital Large Cap Fund LLC. This fund invests in a basket of cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Cardano (ADA), and XRP. This move may signal a more positive stance toward future crypto fund proposals.
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What Does This Mean for Bitcoin's Price?
The combination of sustained institutional investment through ETFs and a more favorable regulatory environment creates a potent bullish scenario for Bitcoin. Historically, increased institutional participation has often preceded significant price rallies.
The accelerating pace of ETF approvals suggests growing acceptance of digital assets within traditional financial frameworks. This legitimacy can attract a broader investor base, potentially driving further demand and price appreciation.
However, it's essential to remember that cryptocurrency markets are inherently volatile. While the current indicators are positive, external macroeconomic factors, such as interest rate decisions and global economic uncertainty, can also significantly impact prices.
Frequently Asked Questions
What is a spot Bitcoin ETF?
A spot Bitcoin ETF is an exchange-traded fund that holds actual Bitcoin. It allows investors to gain exposure to Bitcoin's price movements without having to directly purchase, store, or secure the cryptocurrency themselves. These ETFs trade on traditional stock exchanges.
Why are SEC approvals important for crypto ETFs?
SEC approval signifies that a financial product meets regulatory standards for investor protection and market integrity. For crypto ETFs, it provides a layer of legitimacy and makes investing in cryptocurrencies accessible to a much wider audience, including institutional investors who may be restricted from buying the assets directly.
How do interest rates affect Bitcoin's price?
Lower interest rates typically make riskier assets like cryptocurrencies more attractive compared to yield-bearing traditional investments. Expectations of rate cuts can lead to increased investment in assets like Bitcoin, potentially driving its price higher.
What is the significance of 15 days of consecutive inflows?
A sustained period of inflows indicates strong and consistent demand from investors. It suggests growing confidence in the asset and can be a powerful momentum indicator, often contributing to upward price pressure.
Are there risks to investing in Bitcoin through an ETF?
Yes. While ETFs simplify access, they still carry the inherent volatility and risk of the underlying asset, Bitcoin. The value of the ETF will rise and fall with Bitcoin's price. Additionally, ETFs have management fees that can slightly erode returns over time.
What other crypto ETFs might be approved next?
The approval of a multi-crypto fund from Grayscale suggests the SEC may be open to ETFs holding a diversified basket of cryptocurrencies. This could pave the way for funds based on other major altcoins or specific sectors within the crypto market, like decentralized finance (DeFi).
Investing in cryptocurrencies involves a high degree of risk. Their prices can be extremely volatile, and you could lose your entire principal. Please carefully assess your risk tolerance before investing.