Bitcoin Declines Despite Significant ETF Inflows
- Bitcoin fell about 4% to $71,235 after reaching a high of $75,600 earlier in the week.
- U.S.-listed spot Bitcoin ETFs recorded approximately $1.16 billion in inflows over seven days.
- Wednesday saw the first daily outflow of around $129 million as interest-rate expectations shifted.
- The Federal Reserve maintained its benchmark rate at between 3.5% and 3.75%, with inflation expected to stay elevated.
- Brent crude futures rose above $110 a barrel, affecting market expectations for rate cuts.
Despite significant institutional investment into U.S.-listed Bitcoin ETFs, Bitcoin’s price declined due to macroeconomic pressures such as rising oil prices and persistent inflation concerns affecting rate cut expectations.
The ongoing inflows into Bitcoin ETFs suggest a maturing investor base treating Bitcoin as a long-term asset despite short-term volatility driven by external economic factors like Federal Reserve policies and oil price surges.Source
