Bitcoin Consolidates After Dipping 1%, Institutional Inflows Support Recovery

Bitcoin's recent dip of 1% over the past 24 hours is being seen as part of its ongoing consolidation following its advance towards $85,000. Despite this pullback, institutional inflows continue to support the bullish case for Bitcoin.

The US inflation and economic growth figures are expected to be released soon, which could influence interest-rate expectations and short-term market direction. Analysts forecast a 0.4% monthly increase in the August Personal Consumption Expenditures price index, compared with 0.2% the previous month, as well as 1.5% second-quarter GDP growth.

A stronger-than-expected inflation figure could reinforce expectations of tighter monetary policy, which could pressure cryptocurrencies like Bitcoin by increasing the appeal of interest-bearing assets and making financial conditions less supportive of speculative investment.

However, institutional demand remains a counterweight to these macroeconomic risks. US spot Bitcoin ETFs have recorded eight consecutive trading sessions of net inflows, with approximately $3 billion entering the products during that period.