Fed Hawkishness and Middle East Tensions Cap Bitcoin Price Upside

Bitcoin (BTC) prices rose above $76,500 on Thursday following a mild recovery in the previous session. However, this rebound is being tempered by outflows from US-listed spot exchange-traded funds (ETFs), which have recorded an outflow of $295.98 million on Wednesday.

This marks the second consecutive day of withdrawals for these funds, highlighting cautious institutional positioning so far this week. The Fed's hawkish outlook and escalating tensions in the Middle East are also limiting BTC upside potential.

The US Federal Reserve raised its benchmark interest rate by 25 basis points (bps) on Wednesday, bringing the Federal Funds Target range to 3.75%-4.00% for the first time since 2023. This decision aligns with market consensus and came with a more hawkish outlook from Fed officials.