Bitcoin Faces Weakening Demand Amid Inflation Concerns
Bitcoin has been struggling in recent trading sessions, posting four consecutive bearish sessions and accumulating a decline of nearly 4.0%. This selling pressure is attributed to renewed geopolitical uncertainty, particularly between the United States and Iran, which has increased inflation concerns for major economies.
The rising crude oil prices have also contributed to stronger inflationary pressures, potentially leading to more aggressive central banks. According to ECB comments from Lagarde, tensions in the Middle East could result in a more restrictive monetary policy stance in the coming months.
As investors adjust to expectations of higher interest rates, they may shift their capital towards more stable assets, such as bonds. The recent move of 10-year bond yields across economies like the United States, Canada, and Europe reaching fresh highs for 2026 supports this notion.
The behavior of Open Interest, an indicator measuring open positions on BTC exchanges, suggests that a significant portion of new activity is associated with bearish positions. This may indicate weakening short-term confidence around Bitcoin demand.