U.S. spot Bitcoin ETFs returned to net inflows on Thursday, snapping a 10-day losing streak, as a weak jobs report and softer signals from the Federal Reserve eased pressure on risk assets.
Rate fears easeTim Sun, senior researcher at HashKey, tied the turn to "the marginal shift in interest rate expectations." Persistent outflows, he said, had reflected the market's "pricing-in of further rate hikes," which lifted the dollar and real yields against non-yielding Bitcoin, while the weak payrolls print has been "weakening the market's anticipation of further rate hikes."
Not a reversal yetSun cautioned that the bounce is "only a temporary recovery after the easing of interest rate pressure” with a trend reversal as yet unconfirmed. Bitcoin's path is still "constrained by changes in the U.S. dollar, real interest rates, and Federal Reserve policies," he added.
Stephen Wundke, strategy and revenue director at Algoz Technologies, saw bargain-hunters buying oversold assets after a flight to safety that hit even gold, with investors crowding into Treasury bills. Falling five-year yields and oil prices, he added, signal inflation coming back under control, while those investors “looking for a BTC bottom or recognising oversold assets started to bottom fish.” Bitcoin may "bounce around the bottom for a few more weeks," he said, "but the direction of travel is clear to see."
