Bitcoin Slumps Amid Inflation Concerns as ETF Inflows Hit Record Pace

Bitcoin's price cooled down to $77,379 on Friday afternoon after sliding more than 3% in 24 hours. The cryptocurrency had reached a weekly high of $81,281 but retreated following Federal Reserve Chair Kevin Warsh's comment that he has 'more work to do' on inflation.

The drop is not surprising given the near-term interest-rate risk for crypto prices. Historically, Bitcoin performs better in a low-interest rate environment.

However, U.S. spot Bitcoin ETFs have drawn over $3 billion since August 17 with nine consecutive days of net inflows, signaling strong institutional adoption and funding that could support broader market growth amid macro headwinds and record U.S. debt.