Bitcoin holds near multi-week highs as ETF inflows offset macro headwinds - London Business News | Londonlovesbusiness.com

"Spot Bitcoin ETFs recorded inflows for a third consecutive session, attracting nearly USD 462 million on Wednesday and bringing total inflows since the beginning of the month to roughly USD 1.15 billion. These flows suggest that institutional investors are selectively rebuilding exposure after months of intermittent outflows."

"However, the rally may face constraints while macro conditions remain challenging. Persistent geopolitical tensions in the Middle East, alongside a strong US dollar and elevated Treasury yields, continue to limit risk appetite."

"Expectations that the Federal Reserve may maintain a cautious stance in 2026, supported by resilient US economic data, could cap the upside potential. Friday's US nonfarm payrolls report will therefore be closely watched as investors recalibrate interest rate cut expectations and assess the durability of Bitcoin's rebound."

Bitcoin stabilized near USD 73,000 following a strong rally that reached multi-week highs. Spot Bitcoin ETFs recorded inflows for three consecutive sessions, with Wednesday attracting nearly USD 462 million and bringing monthly inflows to approximately USD 1.15 billion. This activity indicates institutional investors are selectively rebuilding exposure after months of intermittent outflows. Derivatives data shows short liquidations exceeded longs over the past 24 hours, supporting the constructive sentiment. However, the rally faces constraints from challenging macro conditions including geopolitical tensions in the Middle East, a strong US dollar, and elevated Treasury yields that limit risk appetite. Federal Reserve expectations for a cautious 2026 stance, supported by resilient US economic data, may cap upside potential. The upcoming US nonfarm payrolls report will be closely monitored as investors recalibrate interest rate cut expectations.

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