Bitcoin Slips Below $80,000 Amid Rate Hike Fears, Crypto ETF Inflows Remain Strong
Bitcoin's price has dropped below $80,000 due to improved odds of a rate hike following robust US employment data. Despite this, institutional demand remains strong, with crypto-focused Exchange Traded Funds (ETFs) attracting nearly $1.25 billion in inflows last week.
Crypto ETFs have recorded their third consecutive week of over $1 billion in inflows, indicating firm demand among large institutional investors. Grayscale's ZEC-focused trust-turned-ETF saw over $45 million in inflows, surpassing $430 million in Assets Under Management (AUM), reflecting institutional demand diversifying toward private money.
From a technical perspective, the May 6 high at $82,850 serves as an immediate resistance zone for Bitcoin. A confirmed breakout above this level could target the 78.6% Fibonacci retracement level at $89,337. However, the Relative Strength Index (RSI) is hovering near 66 on the daily chart, suggesting positive yet cooling momentum.