Bitcoin Slumps Amid Inflation Fears, Yet ETF Inflows Soar
Bitcoin's price cooled down to $77,379 on Friday afternoon after experiencing a significant drop of over 3% in the past 24 hours. This decline comes after the cryptocurrency hit a weekly high of $81,281 earlier this week.
The sharp decrease is attributed to Federal Reserve Chair Kevin Warsh's comment that he has 'more work to do' on inflation. Historically, when the Fed thinks inflation is too high, it can lead to less chance of a rate cut, which typically hurts Bitcoin's price in a low-interest-rate environment.
However, despite this recent setback, the strong institutional adoption and funding from U.S. spot Bitcoin ETFs continue to support the market. Since August 17, these funds have drawn over $3 billion, with net inflows reaching $1.14 billion this week alone.