Cryptocurrency markets delivered a mixed performance last week as Bitcoin lagged behind major Wall Street indexes despite a renewed risk-on sentiment across global financial markets. Bitcoin recorded a 2.15% gain over the seven-day period, failing to keep pace with the S&P 500, which jumped 3.51%, and the tech-heavy Nasdaq Composite, which surged 5.09%. The broader equities rally erupted after cooler-than-expected July payroll numbers fueled expectations of softer monetary policy, according to analysis from liquidity provider Wintermute.
Institutional ETF Inflows Experience Resurgence
Even though Bitcoin's spot price momentum remained muted, institutional capital flows registered a significant turnaround. US spot Bitcoin exchange-traded funds (ETFs) logged $853.5 million in net inflows across five consecutive trading sessions, marking the strongest weekly capital intake for the products since mid-April.
Ethereum ETFs mirrored this positive trajectory, securing $244.9 million over the course of the week and extending their continuous weekly inflow streak to five weeks. Investment giant BlackRock dominated the institutional activity, capturing over 80% of the combined total net flows across both Bitcoin and Ethereum ETF products. This inflow surge marks a decisive shift from the capital rotation away from digital assets observed in preceding weeks.
Selling Pressure Absorbs ETF Demand
Despite the influx of institutional capital, Wintermute highlighted that the spot price response of BTC has remained constrained. While positive ETF flows are a welcoming indicator, market participants should avoid declaring a structural bull trend based solely on one week of data.
The visible divergence between equity benchmarks and Bitcoin suggests that institutional ETF buy orders are currently being absorbed by persistent overhead selling pressure from existing holders. Analysts emphasize that ETF inflows must demonstrate sustained continuity before the broader market can pivot outright constructive. Key macro catalysts, including upcoming inflation data, the annual Jackson Hole symposium, and legislative updates regarding the CLARITY Act, are expected to dictate whether Bitcoin's recovery effort gains lasting traction.
Traditional Banking Embraces Blockchain Infrastructure
Beyond spot asset trading, traditional financial powerhouses continue to integrate distributed ledger technology into core operational systems. Wells Fargo revealed plans to roll out tokenized deposits this fall. The institutional service will initially enable internal USD/GBP exchanges for corporate clients operating on the bank's proprietary blockchain, with full commercial expansion slated through 2027.
This initiative underscores a growing trend among global financial entities adopting blockchain architecture for settlement efficiency while remaining cautious regarding unbacked cryptocurrency holdings. Major financial institutions are prioritizing crypto's underlying technological plumbing to optimize legacy operations rather than holding speculative digital tokens on corporate balance sheets.
Altcoin Overview: Dogecoin Displays Divergence as XRP Hits Multi-Month Low
At the time of writing, Bitcoin was trading at $63,514, reflecting a modest 0.6% decline over the past 24 hours. Altcoin performance presented a fragmented picture across the broader market.
Dogecoin showed preliminary signs of price stabilization around the $0.070 level, supported by bullish momentum divergence, whale wallet accumulation, and improving derivatives indicators. Conversely, major altcoins including Ripple (XRP), Cardano (ADA), Solana (SOL), and Stellar (XLM) remained pinned under bearish pressure. XRP flirted with a 20-month low, placing its critical $1.00 psychological support level at risk, while ADA and SOL faced downside risks due to weakening derivatives metrics and absent buying volume.
