Bitcoin ETF Demand Surges, But Bond Market Pressure Looms
The U.S. Spot Bitcoin ETFs have seen a significant surge in demand over the past five days, attracting $2.65B in net inflows.
This influx of capital has flipped the ETF's year-to-date flows positive and driven the price of Bitcoin to an eight-month high of $87K.
The strong demand is largely being driven by institutional investors, with BlackRock accounting for half of the ETF flows. In contrast, hedge funds and retail traders have been selling their holdings in the ETFs.
However, the bullish momentum is facing renewed pressure from the bond market, with yields jumping to 5.1% and oil prices ticking higher, reinforcing inflation fears.
The potential for a Fed rate hike in October is also weighing on the asset's price, with interest rate traders pricing a 64% chance of another hike during the next meeting.