Bitcoin Hovers Around $80,000 as Rate Uncertainty Tests Institutional Demand

Bitcoin has been trading around $80,000 for several days as institutional buying battles uncertainty over US interest rates. The largest cryptocurrency had a volatile week that saw it briefly climb above $82,000 before retreating following stronger-than-expected US employment data.

Institutional demand remains one of Bitcoin's strongest underlying supports. US-listed spot Bitcoin exchange-traded funds attracted around $986.9 million last week, taking inflows over the past three weeks to approximately $3.8 billion, the strongest three-week run this year.

However, macroeconomic conditions remain the biggest near-term obstacle for Bitcoin. The stronger labour-market conditions reduce pressure on the Federal Reserve to loosen monetary policy, an important consideration for Bitcoin because lower rates generally increase investor appetite for higher-risk assets.