Bitcoin Bounces on ETF Inflows, Faces $66,500 Test

Bitcoin has made a recovery after adding 1% to its value on Tuesday, but it's still trading below its 50-day Exponential Moving Average (EMA) at approximately $64,376.

The renewed institutional demand for Bitcoin comes from US spot Exchange-Traded Funds (ETFs), which have recorded consecutive daily inflows totaling $189.30 million this week.

However, the Federal Reserve's interest-rate outlook is still a concern, and investors are awaiting the release of the FOMC Minutes on Wednesday to see how policymakers view inflation and economic growth.

If the minutes suggest further tightening remains possible, it could push US Treasury yields and the US Dollar higher, weighing on Bitcoin and other risk-sensitive assets.

On the other hand, a more balanced or dovish message from the Fed could support cryptocurrency valuations by improving expectations for future liquidity conditions.