Institutional Demand Supports BTC as Oil Prices Fall and Fed Hawkishness Rises
Bitcoin has been consolidating around $86,000 after rising 6% this week, supported by strong institutional demand and improving risk appetite.
Risk sentiment has improved due to hopes for diplomacy in the Middle East conflict and falling oil prices, which have dropped more than 5% this week. The price of oil is now below $100 a barrel, easing inflation concerns.
Despite these positive factors, the Federal Reserve's hawkish tone has lifted the US dollar, making it harder for Bitcoin to maintain its gains in previous interest-rate environments.
Institutional demand remains strong, with spot Bitcoin ETFs recording almost $2 billion in net inflows over four days. This suggests that Bitcoin is increasingly being supported by crypto-specific drivers rather than the wider macro backdrop.