Bitcoin Bounces on ETF Inflows Ahead of Hawkish Fed Minutes

Bitcoin has rebounded following a period of trading below several important long-term technical indicators. According to CoinGlass data, US spot Bitcoin Exchange-Traded Funds (ETFs) recorded $189.30 million in net inflows on Tuesday, marking the second consecutive day of positive flows this week.

The renewed institutional demand has provided additional buying pressure, helping BTC extend its recent recovery. However, investors are cautious ahead of Wednesday's release of the Federal Open Market Committee Minutes, which could provide insight into the Federal Reserve's interest-rate outlook and inflation concerns.

A hawkish set of minutes suggesting further tightening remains possible could push US Treasury yields and the US Dollar higher, weighing on Bitcoin and other risk-sensitive assets. Conversely, indications that policymakers consider additional tightening unnecessary could support cryptocurrency valuations by improving expectations for future liquidity conditions.

Bitcoin's next directional move may depend on whether ETF inflows continue and how markets interpret the Federal Reserve's policy message. A sustained surge above the 50-day EMA at $64,376 could preserve Bitcoin's short-term recovery attempt, but BTC remains below the 100-day EMA at $66,334 and the 200-day EMA at $71,451.