Bitcoin Diverges from Stocks as Weak Demand Holds Back Price

Despite US stocks hitting fresh record highs, Bitcoin has been falling over the past week. As of Friday, BTC dropped from around $65,000 on Monday to as low as $62,470 on Bitstamp.

The tech-heavy Nasdaq 100 closed the week approximately 1% higher, while Bitcoin failed to respond as expected. This is attributed to weak underlying demand and continued ETF outflows, structural headwinds that are holding back the cryptocurrency's price.

Sandeep Pyapali, founder and CEO of payments firm Mesta, described this week's PPI and jobless-claims data as a 'clean dovish signal', combining cooler inflation with a weakening labor market. However, he noted that crypto failed to respond accordingly.