Inflation, Geopolitics Trigger $920M Crypto ETP Outflows

U.S. producer prices rose faster than expected as wholesale energy costs climbed amid US-Iran tensions, pushing broader producer price measures higher and reducing expectations for near-term Federal Reserve easing. Analysts expect retail sales to rise as consumers spend more on gasoline, and the labor market remained firm during the reporting period.

Investors withdrew $920 million from crypto exchange-traded products during the week. Bitcoin ETPs accounted for $830 million of those outflows, and the broader crypto ETP market recorded its first significant reversal after seven consecutive weeks of inflows.

Bitcoin fell 1.4% week-to-date, underperforming gold, which rose 0.5%, and equities, which gained about 0.3% over the same period.

The Senate Banking Committee approved the 309-page Clarity Act in a 15-9 vote. The bill would place most spot crypto markets under Commodity Futures Trading Commission oversight. Supporters argue the measure would resolve longstanding legal uncertainty for exchanges, custodians and institutional investors. The committee vote represents the first substantive procedural milestone for comprehensive U.S. crypto market-structure legislation.

Full Senate passage will require clearing a 60-vote threshold, and any Senate version would need reconciliation with the House. The White House has signaled a July target for action, though the legislative calendar is tight and several steps remain before the measure could become law.

Market participants expect near-term crypto price moves to be driven more by macroeconomic and geopolitical developments than by legislative progress. The week’s data and flows show inflation readings and energy-price volatility were key drivers of investor decisions during the period.