Bitcoin Stumbles as ETF Demand Meets Rising Rate Hike Odds
Bitcoin's price is struggling to hold above $80,000 after a strong institutional buying day, as investors weigh the impact of Federal Reserve rate hikes and Treasury buybacks.
The largest single-day inflow into U.S. spot Bitcoin ETFs since January 14 brought in $730.9 million on Thursday, with BlackRock's IBIT accounting for $454 million and ARK 21Shares adding around $138 million.
However, the jobs report showed a stronger-than-expected 162,000 new positions in August, pushing market-implied odds of a September Fed hike back toward 60%, which is causing concern among investors.
The Treasury buybacks have revived the 'debasement trade', with concerns around U.S. fiscal sustainability and sovereign debt supporting demand for scarce assets like Bitcoin and gold.