Bitcoin Bounces Back Amid Hawkish Comments, Strong Spot Demand
Bitcoin's rally remains strong despite rising September rate hike expectations and hawkish comments from Federal Reserve Chair Kevin Warsh. The cryptocurrency gained around 25% in August, reaching a high of $81,500 before dropping below $77,000. According to Bitfinex analysts, the spot-driven demand is healthy for Bitcoin.
Spot demand has been driving the rally, with open interest rising gradually to $55.6 billion and futures basis remaining contained. The U.S. spot Bitcoin ETFs recorded net inflows of $924.5 million last week, despite a $201.9 million outflow on Friday following Warsh's comments.
Institutional demand continues to support both Bitcoin and Ethereum (CRYPTO: ETH), with custodial addresses adding around 59,100 BTC since late June. This suggests that institutional buying is absorbing profit-taking from large whales, who sold about 50,500 BTC during this period.