Bitcoin Loses Momentum as Crude Oil Prices Rise
Bitcoin's momentum has lost steam as crude oil prices rose, potentially leading to higher inflation and interest rates. The BTC/USD pair retreated to $84,280, below this month's high of $87,266. Despite this, Bitcoin remains nearly 50% above its lowest level this year.
The recent rally in crude oil has led to rising gasoline and diesel prices, with US gasoline at $4.47 and diesel at $6.52. This is bearish for Bitcoin as higher inflation means the Federal Reserve may hike interest rates one more time this year, possibly in October or December.
On the positive side, spot Bitcoin ETFs have seen significant inflows, adding over $2 billion this week and a total of over $5.6 billion in the past three months. This has turned them positive for the year, with assets now worth over $110 billion since inception.