BTC retreated from $81k to $77.1k after hawkish Fed signals; spot ETF inflows suggest resilience despite macro headwinds.
Macro & Markets ·
Bitcoin retreated from above $81,000 to near $77,100 following hawkish remarks by Federal Reserve Chair Kevin Warsh at Jackson Hole, pushing implied September rate-hike odds to 57 percent. August inflation data showed headline Personal Consumption Expenditures at 3.7 percent and core PCE at 3.3 percent, reinforcing expectations of sustained monetary tightening. Bitfinex analysis notes that despite the pullback, the cryptocurrency held above the $77,100 level with price structure marked by ascending highs and lows.
The market is absorbing near-term pressure through institutional participation rather than leverage expansion. US spot Bitcoin ETFs recorded nearly $1 billion in net inflows during the week, while Ether investment products drew $815.7 million and extended their streak to 10 consecutive sessions of inflows. Open interest has expanded gradually, funding bases remain contained, and large holders have reduced holdings since late June while custodial balances at exchanges and platforms increased—signals of sustained spot demand.
What remains uncertain is whether this inflow resilience can persist if rate expectations harden further. Upcoming labor market and inflation data will test whether crypto demand stays intact amid a monetary policy environment that now appears less accommodative. The macro constraint appears to be the primary limiter on price appreciation rather than internal market structure deterioration.