Bitcoin fell back Friday afternoon, giving up part of a rally that had been driven by heavy inflows into U.S. spot Bitcoin exchange-traded funds. By Friday afternoon in New York, Bitcoin was trading at $77,379, down more than 3% over the past 24 hours, after reaching as high as $81,281 earlier in the week.
According to ChainCatcher, market sentiment softened after Federal Reserve Chair Kevin Warsh said in his first major speech since taking office that there was still "more work to do" in the fight against inflation. The report said the earlier advance had been led mainly by liquidity and fund flows rather than a separate catalyst from the crypto market itself.
U.S. spot Bitcoin ETFs recorded $1.14 billion in net inflows this week, with cumulative inflows topping $3 billion over the past nine days. BlackRock’s iShares Bitcoin Trust took the largest share. The report also noted that the U.S. Treasury last week doubled the size of its liquidity-supportive buyback operations, which also helped lift Bitcoin. Analysts tied the move to a "currency debasement trade," with investors using Bitcoin as a hedge against currency erosion and government overspending.
Bitcoin retreated Friday afternoon, ending a strong run that had been powered by inflows into exchange-traded funds, according to ChainCatcher.
By Friday afternoon in New York, Bitcoin was trading at $77,379, down more than 3% over the past 24 hours. Earlier this week, it had climbed as high as $81,281.
Federal Reserve Chair Kevin Warsh said in his first major speech since taking office that there was still "more work to do" in fighting inflation. That comment cooled market sentiment.
The earlier rally was driven mainly by fund flows. U.S. spot Bitcoin ETFs posted $1.14 billion in net inflows this week, and cumulative inflows over the past nine days exceeded $3 billion. BlackRock’s iShares Bitcoin Trust captured the largest share.
ChainCatcher also said the U.S. Treasury last week announced that it would double the size of its liquidity-supportive buyback operations, a move that also helped Bitcoin’s rise.
Analysts linked the rally to a "currency debasement trade," with investors treating Bitcoin as a hedge against currency debasement and excessive government spending. Total U.S. government debt surpassed the $40 trillion mark for the first time this month, reinforcing concern over the erosion of fiat purchasing power.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
