Bitcoin Price Stuck at $80k as Fed Hawkishness Trumps ETF Inflows
Bitcoin's price remains stuck below $80,000 despite strong institutional demand for US spot Bitcoin exchange-traded funds (ETFs), which pulled in near $1 billion last week. The iShares Bitcoin Trust (IBIT) led with $938 million in net inflows from Aug. 24 to Aug. 28, according to SoSoValue data.
The demand was strong enough that spot Ether ETFs added $824 million over the same stretch, with BlackRock's ETHA fund leading the way. However, both Bitcoin and its rival failed to capitalize on this renewed interest.
The main reason for Bitcoin's price stagnation is largely attributed to the Federal Reserve. Fed Chair Kevin Warsh delivered a hawkish keynote at the Aug. 28 Jackson Hole Economic Policy Symposium, warning that inflation remained a bigger concern than the labor market and declining to rule out a rate hike. This sent traders pricing in higher odds of a hike at the Fed's September meeting.
Bitcoin also faces a longer-term technical hurdle. On-chain analytics firm CryptoQuant pointed out that a bull market confirmation tied to Bitcoin's 365-day moving average, near $83,000, remains elusive. Despite its rally from the mid-$60,000s, BTC has repeatedly failed to close above this level.