Bitcoin Defies Rate Hike Fears, Holds Above $79,000 Amid Institutional Demand

Bitcoin's resilience in the face of rising interest rate expectations has left many market observers perplexed. The cryptocurrency has shown unusual stability, trading within a narrow range over the past week despite macro pressures mounting.

The recent U.S. jobs report sparked concerns that the Federal Reserve would hike interest rates more aggressively, pushing Fed rate hike odds towards 60%. However, Bitcoin (BTC) has defied these expectations, ending the week 3.45% higher, with prices briefly dipping from $82,400 to below $80,000.

According to Wintermute Research, the unusual resilience can be attributed to a rotation of capital from exhausted equity trades into cryptocurrency. The firm highlighted that crypto took three of the strongest spots behind oil in its cross-asset comparison, while equities stalled and bonds and gold weakened.

The strong institutional demand for Bitcoin is also contributing to its stability. Spot Bitcoin ETFs attracted $987 million for the week and nearly $3.8 billion over three consecutive weeks.