Bitcoin Loses Momentum Amid Macro Uncertainty

Bitcoin's recent rally has been tempered by a challenging macro environment, which is weighing on risk assets across the board. The cryptocurrency's price has cooled after a 4% surge last week, with BTC trading down 2% over the past 24 hours at $83K.

The rising uncertainty surrounding global events, particularly in the Middle East, has contributed to this decline. President Trump's rejection of Iran's proposal and warnings of potential military action have sent oil prices soaring by over 2%, adding to inflationary concerns.

Furthermore, the Federal Reserve's recent interest rate hike and strong economic data have led markets to price in a 70% probability of another rate hike in October. This has resulted in higher U.S. Treasury yields, with the 10-year yield reaching 5.23%, a level not seen since 2007.

Despite this challenging backdrop, Bitcoin's price remains supported by strong institutional demand and seasonality. ETF inflows have reached $2.39 billion last week, marking the largest weekly inflow since October 10, when the price reached a record high.