Bitcoin Fails to Rally on Softer Rate-Hike Expectations Amid ETF Outflows and Miner Selling

The Bitcoin market has failed to respond to softer rate-hike expectations, raising questions about its near-term demand. According to Wintermute's latest market update, falling rate-hike odds have not lifted BTC, while ETF redemptions and miner selling have left the market without a strong source of fresh demand.

Last week, US spot Bitcoin ETFs saw $390 million in outflows, the largest weekly redemption since early July. This comes as rate-hike expectations for September were cut from roughly even to about one-in-three after July's CPI print came in at 0.1% month-on-month.

Wintermute noted that despite the softer inflation data, Bitcoin failed to rally, with CoinGecko data showing it currently trading around $64,000, up 1.2% over 24 hours but down nearly 1% over 30 days and 49% below its October all-time high.

The firm also pointed to miner selling as a problem, citing Riot Platforms' second-quarter sales of 4,300 BTC after selling 3,778 BTC in the first quarter. The miner's treasury fell to 11,380 BTC as mining costs approached $91,000 per unit, contributing to its $237 million quarterly loss.