Woofun AI reports that renewed but fragile demand has emerged in US spot Bitcoin ETFs, with Simon-Peter Massabni, head of business development at XS.com, noting to Cointelegraph that the current recovery "still lacks real strength" despite a second week of positive flows.

The financial data reveals a stark contrast between recent weekly gains and broader outflows. For the week ending July 17, net inflows reached $75.7 million, following $197.4 million the prior week, which brought July’s total ETF inflows to $200.2 million. This modest accumulation stands in sharp relief against June’s $4.5 billion in net outflows, leaving total 2026 net flows deeply negative at $5.2 billion.

Woofun AI data shows that price action remains constrained by technical resistance levels. Bitcoin recovered toward $64,000 after June’s decline, yet this move failed to confirm a broader trend reversal. Massabni emphasized that the asset must "decisively break above the $65,000–$65,500 range" to validate a new uptrend, arguing that four consecutive sessions of inflows signal easing selling pressure rather than a return of broad-scale institutional buying.

Institutional sentiment has shifted significantly, as evidenced by Citigroup’s revised forecasts. On July 1, Citi cut its 12-month ETF inflow forecast from $10 billion to zero, citing weaker-than-expected flows. The bank also lowered its 12-month Bitcoin price target from $112,000 to $82,000, reflecting concerns over the absence of a sufficiently strong catalyst to turn the current rebound into a genuine trend.

Long-term trajectory comparisons suggest volatility will persist. Bloomberg ETF analyst Eric Balchunas compared Bitcoin ETFs’ path with gold ETFs, noting both have seen rapid adoption followed by extended periods of weaker performance. In an X post, Balchunas predicted Bitcoin ETFs may follow a pattern of "spectacular gains, painful drawdowns and recoveries," with each cycle potentially setting higher highs over time.