Bitcoin Rally Falters Despite Positive Institutional News
- Bitcoin briefly reached $74,000 but ended the week below $69,000, losing $110 billion in market cap.
- Morgan Stanley named Bank of New York Mellon as a custodian for its spot bitcoin ETF exposure.
- Crypto exchange Kraken gained access to the Federal Reserve’s payment system, marking a significant integration with traditional finance.
- Over the past day, short-term holders sold more than 27,000 BTC ($1.8 billion), reflecting caution amid macroeconomic uncertainties.
- U.S. spot bitcoin ETFs recorded approximately $787 million in net inflows last week, their first positive flow since mid-January.
Despite significant institutional developments, Bitcoin’s price remains highly influenced by macroeconomic factors rather than crypto-specific news. The correlation with risk assets like equities has intensified as institutional adoption grows.
The recent selloff highlights that even amidst positive trends like net inflows into bitcoin ETFs, market dynamics are heavily swayed by broader economic conditions and investor sentiment.(Source)
