Bitcoin Defies Fed Hike Fears as Institutional Demand Continues
Bitcoin has defied expectations of a decline due to rising interest rate fears, with its price holding above $79,000. This unusual resilience is attributed to capital rotating from exhausted equity trades into crypto, according to Wintermute Research.
The firm highlighted that Bitcoin took three of the strongest spots behind oil in its cross-asset comparison, while equities stalled and bonds and gold weakened. Strong institutional demand is also helping, with spot Bitcoin ETFs attracting $987 million for the week and nearly $3.8 billion over three consecutive weeks.
Bitcoin's bear market drawdown has been shallower than past cycles, with the asset remaining around 50% below its high after 340 days. This divergence could indicate capital leaving exhausted equities and finding its way into digital assets, according to Wintermute.
The firm believes that slowing equity momentum does not necessarily imply a stock bear market but rather fading enthusiasm following the AI-driven rally making crypto increasingly attractive at the margin.