Bitcoin Pulls Back Below $83,000 Amid Macro Uncertainty and Strong Institutional Demand
Bitcoin has cooled down after a sharp rally over the past few weeks, trading at $82,700 as of press time. This pullback follows the cryptocurrency briefly breaking through $87,000 earlier last week, reaching its highest level since January.
Institutional demand has picked up, with Bitcoin exchange-traded funds (ETFs) attracting their largest weekly net inflow since October last year. U.S. spot Bitcoin ETFs drew approximately $2.4 billion in inflows during the week ending September 25, marking the largest weekly net inflow since the week ending October 10 last year.
Despite this surge in demand, macroeconomic uncertainties have weighed on risk assets and cryptocurrencies. The Federal Reserve's decision to raise interest rates has led traders to price in the likelihood of another rate hike in October. Meanwhile, U.S. President Trump's rejection of Iran's proposal to reopen the Strait of Hormuz and the recent failure of the Digital Asset Market Clarity Act in the U.S. Senate have also contributed to the market uncertainty.
However, some investors believe that Bitcoin's recent weakness is merely a temporary pause following its strong rally, rather than the end of its upward momentum. Richard Galvin, Executive Chairman of DACM, stated that 'the late-stage gains were to be expected' and that the current correction was 'a natural part of the process.'