Bitcoin Demand Momentum Fades Amid Rising Inflation Uncertainty

The recent performance of Bitcoin has become increasingly challenging, with four consecutive bearish sessions and a decline of nearly 4.0% in that period.

This downturn has brought selling pressure back into focus across the market, limiting part of the demand previously observed around BTC in the short term.

Several developments have emerged across financial markets, including renewed geopolitical uncertainty in the Middle East and increased inflation concerns due to rising crude oil prices.

These factors may reduce appetite for risk assets like Bitcoin and increase expectations of more aggressive central banks, which could further strengthen the attractiveness of bonds.

The synchronized move in 10-year bond yields across economies such as the United States, Canada, and Europe has increased the returns offered by these instruments, potentially drawing capital away from risk markets like BTC.