Bitcoin Rallies, but Institutional Caution Remains
Bitcoin extends its bullish momentum, supported by increased risk appetite in the cryptocurrency sector, marking three consecutive sessions of gains and heading towards a positive weekly close after three weeks under pressure. Currently, it is trading around $99,000, reinforcing the perception that, despite recent volatility, investors still maintain support and interest in crypto assets.
However, signs of caution emerge from the institutional front. This week, Bitcoin ETFs recorded significant outflows, with $364 million withdrawn yesterday and a total of $490 million so far this week. This behavior suggests that some institutional participants prefer to stay on the sidelines amid macroeconomic uncertainty.
A relatively positive factor comes from the derivatives market, where short liquidations far exceed long positions, indicating that traders have closed their bearish exposures after being pressured by the recent rally. Meanwhile, open interest rose 7.2% to reach $35.2 billion, mostly driven by long positions.
On the monetary front, the Federal Reserve's restrictive stance continues to weigh on Bitcoin's potential. Recently, FED members reaffirmed their intention to keep interest rates in the 4.25%-4.50% range, maintaining pressure on higher-risk assets. This high-rate environment limits the appeal of riskier assets, affecting the performance of Bitcoin and crypto-related stocks.
Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.
However, signs of caution emerge from the institutional front. This week, Bitcoin ETFs recorded significant outflows, with $364 million withdrawn yesterday and a total of $490 million so far this week. This behavior suggests that some institutional participants prefer to stay on the sidelines amid macroeconomic uncertainty.
A relatively positive factor comes from the derivatives market, where short liquidations far exceed long positions, indicating that traders have closed their bearish exposures after being pressured by the recent rally. Meanwhile, open interest rose 7.2% to reach $35.2 billion, mostly driven by long positions.
On the monetary front, the Federal Reserve's restrictive stance continues to weigh on Bitcoin's potential. Recently, FED members reaffirmed their intention to keep interest rates in the 4.25%-4.50% range, maintaining pressure on higher-risk assets. This high-rate environment limits the appeal of riskier assets, affecting the performance of Bitcoin and crypto-related stocks.
Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.
Global risk Warning CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading in CFDs. You should consider whether you understand how CFD
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Global risk Warning CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading in CFDs. You should consider whether you understand how CFD
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.