bitcoin ·
Bitcoin holds near $74,000 as ETF outflows extend to fourth day
With US bond yields increasing following high CPI inflation data, Bitcoin remained relatively stable around the $74,000 mark, even as equity markets experienced gains.
2 outlets · CoinDesk · CoinTelegraph
The cryptocurrency maintained its level near $74,000 because Tuesday's inflation report increased the probability of a U.S. interest rate hike to approximately 90%. Furthermore, the duration of outflows from Bitcoin exchange-traded funds reached its fourth consecutive day, alongside a notable rise in liquidations.
This pattern of Bitcoin trading sideways while traditional stock markets ascend, despite a concurrent rise in US bond yields, reflects the market's reaction to the elevated CPI figures.
This development underscores the sensitivity of digital asset valuations to shifts in macroeconomic indicators, particularly those pertaining to monetary policy expectations among market participants and institutions.
Why it matters
This divergence shows Bitcoin's current lack of correlation with traditional asset class rebounds. The heightened interest rate expectations could influence the risk appetite for decentralized finance and L2 adoption. Investors should watch how these macroeconomic signals impact crypto market sentiment.
