Inflation Fears Cap Bitcoin Price Recovery

Bitcoin's price recovery has stalled at around $64,000 after a brief rebound earlier this week. Despite some institutional demand showing mild signs of improvement, renewed inflation concerns have capped the cryptocurrency's upside potential.

The Federal Reserve's hawkish tone and escalating US-Iran tensions are fueling volatility in crude oil prices, which is reviving inflation fears and dampening risk appetite. This has put pressure on Bitcoin's price, keeping it below key technical support levels.

US-listed BTC spot ETFs recorded a mild inflow of $32.11 million on Wednesday, snapping four consecutive days of outflows. However, this influx may not be enough to propel the cryptocurrency above its current level of around $64,000.