Bitcoin fund flows show investors trading Fed rate path, not exiting market: CoinShares
Bitcoin’s struggle to break $80,000 comes as markets price in a growing chance of a September rate hike, putting monetary conditions back in focus.
Bitcoin’s struggle to break $80,000 comes as markets price in a growing chance of a September rate hike, putting monetary conditions back in focus.
Crypto fund flows are becoming increasingly sensitive to changes in the US interest-rate outlook, with CoinShares arguing that Federal Reserve policy remains a key barrier to Bitcoin (BTC) breaking above $80,000 despite continued investor demand for crypto.
In his latest market update, CoinShares head of research James Butterfil argued that “Bitcoin is trading like gold again, but the Fed still sets the ceiling” at around $80,000.
As of Monday, Fed Funds futures prices implied a roughly 60% chance of a rate hike following next week’s Federal Open Market Committee (FOMC) meeting, according to CME Group.