Bitcoin Climbs Amid Weaker US Retail Sales but ETF Outflows Signal Institutional Caution
On August 18, 2026, Bitcoin surged 2.5% to $64,402 following weaker-than-expected US July retail sales data. This macroeconomic surprise dampened expectations for Federal Reserve rate hikes, weakening the dollar and reviving risk appetite in crypto markets. However, despite this price boost, institutional investors pulled $389.7 million from US spot Bitcoin ETFs in the prior week, led by Fidelity’s FBTC withdrawals. The delayed US CLARITY Act vote and geopolitical uncertainties contribute to cautious capital flows. Meanwhile, Ethereum gained nearly 2%, with prominent analysts forecasting it will outperform Bitcoin in the long term due to expanding use cases in tokenization and AI. The sustainability of Bitcoin’s rally remains uncertain as markets watch for a potential reversal of ETF outflows in the coming week.
