Bitcoin Price Dips Amid Elevated Yields and Fed Tightening Fears

Bitcoin's price has dipped below $82,800 on Monday after gaining over 4% last week. The cryptocurrency's rally is losing momentum near recent highs, despite strong institutional demand supported by spot Bitcoin Exchange Traded Fund (ETF) inflows.

Last week saw a net inflow of $2.39 billion into spot ETFs, the highest weekly inflow since October 2025, according to SoSoValue data. This robust institutional demand is driving demand for BTC, but elevated US Treasury yields and expectations of further Federal Reserve tightening could weigh on the cryptocurrency's upside.

Simon-Peter Massabni, Head of Business Development at XS.com, notes that Bitcoin's retreat from its recent peak shows that upward momentum is weakening as US Treasury yields remain elevated. He expects ETF inflows to continue supporting Bitcoin, although slowing demand could limit further gains.