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Bitcoin Retreats to High $70,000s After ETF Buying Streak Breaks

Hawkish Jackson Hole remarks followed by a $201.9M ETF outflow on Aug. 28 cooled a rally built on concentrated spot ETF purchases alongside a large options expiry.

Overview

  • U.S. spot Bitcoin ETFs recorded roughly $201.9 million in net withdrawals on Aug. 28, ending a nine‑day inflow run that had channeled about $2.8–$3.0 billion into funds during the rally.
  • Concentrated ETF buying, led by BlackRock’s IBIT, supplied visible spot demand that helped lift Bitcoin from the low $60,000s to an intraday peak above $81,000 earlier in August.
  • About 81,700 Bitcoin option contracts worth roughly $6.44 billion expired on Deribit on Aug. 28, and falling futures open interest indicates many traders bought back short positions rather than opening new leveraged longs.
  • July personal consumption expenditures inflation at about 3.7% and Fed Chair Kevin Warsh’s Jackson Hole remarks pushed up near‑term rate expectations, which strengthened the dollar and weighed on risk assets including Bitcoin.
  • With ETF assets roughly $93–94 billion and cumulative Bitcoin ETF inflows near $55 billion, the market’s next move hinges on whether institutional spot demand resumes when U.S. ETF desks reopen and whether futures positioning rebuilds without excessive leverage.