Bitcoin ETFs face record $8B outflows amid Fed rate caution and geopolitical tensions, but signs of stabilization emerge.

Bitcoin spot ETFs have experienced their longest outflow streak, losing about $8 billion over eight weeks due to a cautious Federal Reserve stance on interest rates and renewed geopolitical tensions in the Middle East. Despite these headwinds, early signs of inflows have appeared in recent sessions, suggesting a potential market stabilization. The market has also grown less reactive to large bitcoin sales by Strategy (MSTR), indicating absorption of such news. Regulatory progress has stalled, adding to uncertainty, but overall the market seems to be navigating a fragile bottoming process amid mixed influences.