Bitcoin Retreats as Macro Headwinds Grow Amid Weak Institutional Demand
Bitcoin's price has retreated over 4% this week and is trading around $76,900. Institutional demand for the cryptocurrency shows signs of weakness, with spot Exchange Traded Funds (ETFs) on track to end their three-week inflow streak after recording nearly $500 million in net outflows through Thursday.
The US Producer Price Index (PPI) data has come in hotter than expected, strengthening expectations for a September rate hike by the Federal Reserve. This further weighs on Bitcoin's price.
Market participants are now focused on Friday's US Consumer Price Index (CPI) report, which could provide further clues on the Fed's policy path and shape the near-term direction for Bitcoin.