Bitcoin rebounded slightly on Wednesday but may stay within a trading range due to cautious investor sentiment. Geopolitical developments in the Middle East and ongoing inflation concerns are influencing market positioning. Elevated Treasury yields and expectations for a more hawkish monetary policy could continue to weigh on risk assets, including bitcoin. Institutional sentiment is deteriorating, with spot Bitcoin ETFs recording $331 million in outflows on Tuesday and cumulative weekly outflows nearing $1 billion. Further outflows could increase downward pressure. Some support may come from large purchases, including Strategy acquiring $2 billion in bitcoin on Monday. Market focus is shifting to Federal Reserve minutes for guidance on monetary policy, alongside Nvidia’s earnings release for broader risk appetite signals.
"Bitcoin rebounded slightly on Wednesday, but could remain within a range amid cautious sentiment as investors react to geopolitical developments in the Middle East and inflation concerns."
"Elevated Treasury yields and rising expectations of more hawkish monetary policy could continue to weigh on risk assets like bitcoin. At the same time, institutional sentiment continues to deteriorate, with spot Bitcoin ETFs recording USD 331 million in outflows on Tuesday, bringing cumulative weekly outflows close to USD 1 billion."
"Continued outflows could add downward pressure on the asset. However, the market could continue to see support from some large purchases from the likes of Strategy, which acquired USD 2 billion in bitcoin on Monday."
"Attention now shifts toward the Federal Reserve minutes, which may provide further clues regarding the future path of monetary policy. In addition, investors will also closely monitor Nvidia's earnings release, which could influence risk appetite overall."
Read at London Business News | Londonlovesbusiness.com
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