BTC Gains Strength Despite Hawkish Fed Bets
Bitcoin started September on a strong note after posting its best monthly performance in 21 months in August, with a nearly 25% gain. The cryptocurrency's price is currently above $78,900.
The strong start to the month has been fueled by continued institutional demand for Bitcoin, with spot Exchange Traded Funds (ETFs) recording an inflow of $216.70 million on Monday and total net inflows reaching $924.48 million last week.
Strategy's latest purchase of 4,603 BTC for $370 million also signals a willingness from major corporate participants to continue accumulating Bitcoin despite the strong gains in August.
However, historical data suggests that traders should remain cautious about expectations for the Federal Reserve's next monetary policy moves. The Fed's hawkish stance has revived fears of persistent inflation and increased bets on a potential interest rate hike.