ETF Inflows Offset by Oil-Driven Inflation Concerns for Bitcoin

Bitcoin's price rose on Tuesday due to continued inflows into spot Bitcoin exchange-traded funds (ETFs), but gains were limited by renewed inflation concerns stemming from rising oil prices.

Sustained institutional demand is evident in the data, with digital asset investment products recording net inflows of $1.2 billion last week, with Bitcoin products accounting for the majority.

Rising energy costs are feeding into broader inflation, prompting investors to reassess the likelihood of aggressive monetary easing by the Federal Reserve.

The CME FedWatch tool now shows a lower probability of a rate cut in June, which typically strengthens the dollar and dampens appetite for riskier assets like Bitcoin.