Bitcoin ETFs See $15 Billion Inflows Amid Trump Tax Reforms

Bitcoin ETFs have seen a remarkable surge in inflows, totaling $15 billion, driven by a combination of market optimism and pressure from President Trump on the Federal Reserve. This substantial capital influx into Bitcoin ETFs underscores a growing institutional interest in the cryptocurrency market, influenced by several key factors.

The recent enactment of the One Big Beautiful Bill Act (OBBBA) by President Trump has introduced significant tax reforms that could potentially increase the federal deficit by $3 to $4 trillion. This fiscal expansion is anticipated to boost the money supply, which in turn could drive up the price of Bitcoin. According to analysts' forecasts, these macroeconomic tailwinds, combined with record US equities performance and expansive fiscal policy, could push Bitcoin to $120,000 by the end of July. Bitget Research Chief Analyst Ryan Lee has highlighted that Bitcoin is well-positioned to break its previous high in July, with upside potential toward $120,000 by month-end. Institutional demand and consistent spot ETF inflows continue to reinforce bullish momentum.

The inflows into Bitcoin ETFs have been substantial, with BlackRock's iShares Bitcoin ETF (IBIT) emerging as a significant player in the market. IBIT has surpassed 700,000 BTC, making it the third-largest revenue driver among nearly 1,200 funds. This surge in ETF inflows is not limited to Bitcoin; Ethereum spot ETFs have also recorded eight consecutive weeks of inflows, indicating a broader trend of institutional investment in the cryptocurrency market.

The market optimism is further fueled by the potential for Federal Reserve rate cuts, which could provide additional tailwinds for Bitcoin. The combination of fiscal fears and a rising risk-on sentiment has contributed to the bullish outlook for the cryptocurrency. The technical outlook for Bitcoin also remains strong, with the price extending intraday gains and trading above a recently broken descending trendline. The upward-trending moving averages, including the 50-day and 100-day Exponential Moving Averages, underscore the robust technical structure supporting Bitcoin's price.

In summary, the $15 billion inflows into Bitcoin ETFs reflect a growing institutional interest in the cryptocurrency market, driven by macroeconomic tailwinds, fiscal expansion, and technical strength. The passage of the OBBBA and the potential for Federal Reserve rate cuts have further bolstered market optimism, positioning Bitcoin for continued growth.