Bitcoin Falls Below $78,000 Amid Weaker Demand and Rate Expectations
Bitcoin's recent rally is facing pressure as it trades below $78,000 due to weaker demand and changing US Federal Reserve rate expectations. According to CoinMarketCap data, Bitcoin spot ETFs recorded a net inflow of $94 million on September 2, while Ethereum ETFs saw a net outflow of $103 million.
Prateek Gupta, head of business at Mudrex, attributed the decline to multiple pressures coming together. He noted that the US Federal Reserve's more hawkish stance pushed rate-hike expectations from around 35% to 66-67%, and renewed tensions between the US and Iran added to concerns over inflation.
Rajagopal Menon, vice President at WazirX, cautioned that Bitcoin may remain range-bound and volatile in the near term as the market balances competing forces. He noted that while the broader structure remains constructive, the cryptocurrency's next move is unlikely to be linear.