Bitcoin Stuck Below $80,000 as ETF Demand Hits $1 Billion
Bitcoin's price has remained stuck below $80,000 despite significant demand from US spot exchange-traded funds (ETFs). Between August 24 and August 28, these products pulled in nearly $1 billion in net inflows. BlackRock's iShares Bitcoin Trust led the charge with $938 million in new investments.
The majority of this demand came from institutional investors, who are drawn to the stability and regulatory clarity offered by ETFs. However, despite this influx of capital, Bitcoin's price has not followed suit. One reason for this is the Federal Reserve's hawkish tone, as outlined by Fed Chair Kevin Warsh during the Jackson Hole Economic Policy Symposium.
Warsh warned that inflation remains a major concern and declined to rule out a rate hike at the Fed's September meeting. This sparked a downturn in Bitcoin's price, which fell from around $79,500 to below $77,000 in the hours following the speech.
Another technical hurdle is looming for Bitcoin, as its 365-day moving average stands near $83,000. Despite its rally from the mid-$60,000s, BTC has repeatedly failed to close above this level. The on-chain analytics firm CryptoQuant notes that a bull market confirmation would require a close above this threshold.