Bitcoin stayed relatively stable as investors weighed geopolitical developments and expectations for monetary policy. Progress hopes in Middle East negotiations supported overall market sentiment, which could lower bond yields globally and improve conditions for risk assets. Optimism remained limited because negotiations have repeatedly shifted between progress and setbacks. In the US, Federal Open Market Committee minutes signaled a more cautious policymaker tone, keeping Treasury yields elevated and creating headwinds for non-yielding assets like Bitcoin. Investment flows were also weak, with spot Bitcoin ETFs recording another day of negative flows and weekly outflows near USD 1 billion. Future direction likely hinges on geopolitical headlines and whether ETF flows stabilize.
"Bitcoin remained relatively stable as investors continued to react to geopolitical developments and monetary policy expectations. Hopes of progress in ongoing negotiations in the Middle East have supported broader market sentiment, which could contribute to lower bond yields globally and improve conditions for risk assets. However, optimism remains measured given the repeated cycle of progress and setbacks that has characterised negotiations in recent weeks."
"In the US, the macro picture remains a source of risk as the latest Federal Open Market Committee minutes presented a more cautious tone from policymakers. The latter could create potential headwind for non-yielding assets such as Bitcoin as Treasury yields remain elevated. In addition, investment flows remained weak."
"Spot Bitcoin ETFs have registered another day of negative flows, bringing the weekly outflows to around USD 1 billion. Looking ahead, Bitcoin's direction is likely to remain closely tied to geopolitical headlines and whether investment flows stabilise."
Read at London Business News | Londonlovesbusiness.com
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