Bitcoin Recovery Faces Headwinds Amid Weakening Institutional Demand
Bitcoin's recovery faces headwinds from institutional demand weakening and elevated Fed rate-hike bets. Spot Exchange Traded Funds (ETFs) recorded over $462 million in net outflows last week, breaking a three-week inflow streak.
The price correction was also supported by the US Dollar, which benefited from persistent geopolitical uncertainties in the Middle East and hot inflation figures that raised bets on Federal Reserve rate hikes. The US central bank is currently pricing in an 86% chance of raising borrowing costs at its two-day meeting this week.
Bitcoin's technical outlook remains uncertain, with a failure to overcome the 50-week Simple Moving Average (SMA) resistance of $78,761 potentially leading to further decline towards $70,000. However, if BTC recovers and closes above the SMA on a weekly basis, it could extend its rally towards $87,599.