Bitcoin Rebound Hinges on Fed Decision, ETF Inflows

The current Bitcoin rebound is being driven by inflows into spot exchange-traded funds (ETFs) and buying by large wallets holding between 1,000 to 10,000 Bitcoin.

This trend is expected to continue if the U.S. Federal Reserve decision on July 29 holds rates steady and sees weakening in the labor market as a bigger risk.

However, if oil prices remain high and the Fed leaves the door open to future hikes, the carrying cost of holding Bitcoin could continue to rise.

The current price of $69,000 is seen as a pivotal level, with many short-term holders averaging out their costs at this price. If Bitcoin breaks through this level, it could be interpreted as a signal of returning institutional demand.