Bitcoin Tests Inflation Data as Oil Nears $100

Bitcoin has been trading near $78,000 despite rising oil prices and bond yields. The cryptocurrency is facing a major macro test this week as the US releases inflation data on Thursday and Friday.

Rising oil prices could lift inflation and increase expectations for another Federal Reserve rate hike, which would put downward pressure on Bitcoin. However, its correlation with the Nasdaq has weakened while its link with gold has strengthened, suggesting it may be trading more like a monetary asset than a tech-driven risk asset.

ETF demand is providing support to Bitcoin, with $3.8 billion in net inflows since August 17 and a single session last week of $730 million. This suggests a durable base of demand rather than short-term speculation, according to Bloomberg ETF analyst James Seyffart.