Institutional Inflows and AI Miners May Prevent Bitcoin's Worst-Case Scenario
Institutional investors are quietly entering the cryptocurrency market, accelerating their entry amid concerns about the U.S. Federal Reserve's hawkish monetary policy.
The latest U.S. labor market data showed a stronger-than-expected result, raising the probability of an interest rate hike to 60% and triggering declines across traditional markets.
However, Bitcoin rebounded quickly after a brief drop from $82,400 to below $80,000, closing the week 3.45% higher and demonstrating unusual resilience compared to other asset classes.
Wintermute analysts attribute this performance to profit-taking in equities, particularly after the sustained artificial intelligence rally, as investors exit technology stocks and move significant capital into Bitcoin and Ethereum.