Bitcoin Price Faces Pressure Amid Elevated Energy Prices and Rate Hike Expectations
The Bitcoin (BTC) price has been under pressure in recent days, trading around $77,600 on Wednesday after slipping 1.45% the previous day.
Several factors are contributing to this weakness, including outflows from exchange-traded funds (ETFs), elevated energy prices amid fresh US-Iran tensions, and rising expectations that Federal Reserve interest rate hikes could weigh on BTC's upside.
Institutional demand for Bitcoin shows early signs of weakness, with spot ETFs recording an outflow of $236.46 million on Tuesday, indicating a cautious stance among investors.
Bitunix Analyst Dean Chen told FXStreet that the current weakness looks more like a liquidity-driven correction than the start of a structural breakdown, driven primarily by elevated interest rates and increased competition for global liquidity.