Bitcoin Holds Firm at $78k Ahead of Inflation Data

Bitcoin is holding steady near $78,000 despite rising oil prices and bond yields. This has set up a major test for the cryptocurrency as US inflation data is released later this week.

The price of Brent crude is nearing $100 per barrel, which could lift inflation expectations and put pressure on Bitcoin. Higher inflation could also increase the likelihood of another Federal Reserve rate hike.

However, Scott Melker notes that Bitcoin's correlation with the Nasdaq has weakened while its link with gold has strengthened. This suggests that BTC may be trading more like a monetary asset than a tech-driven risk asset.

Seyffart says spot Bitcoin ETFs have attracted $3.8 billion in net inflows since August 17, including $730 million in one session last week. He believes this demand is becoming increasingly durable and not just short-term speculation.