BTC retreated from $81k to $77.1k after hawkish Fed signals; spot ETF inflows suggest resilience despite macro headwinds.
Macro & Markets ·
Bitcoin retreated to near $77,100 after Fed Chair Kevin Warsh delivered hawkish remarks at Jackson Hole, cooling gains from above $81,000 the prior week. The comments pushed implied odds of a September rate increase to 57 percent. August inflation data showed headline Personal Consumption Expenditures at 3.7 percent and core at 3.3 percent, reinforcing expectations for a tighter monetary policy stance as the Fed signaled its 2 percent target remains a binding constraint.
Despite the macro headwind, spot Bitcoin ETF inflows remained robust at nearly $1 billion for the week, while Ether investment products took in $815.7 million and extended a 10-session inflow streak. Open interest has grown gradually and basis remains contained, indicating leverage has not driven the rally. Large Bitcoin holders have reduced holdings since late June while custodial balances tied to exchanges and ETF platforms have expanded, pointing to institutional absorption of supply.
The outcome is a dual-pressure environment: ETF and stablecoin demand cushions price action above $77,100 support, but higher expected borrowing costs cap upside potential. Whether underlying demand proves resilient hinges on upcoming labor market and inflation data—if inflows persist amid a higher-rate regime, it would signal the selloff reflects macro repricing rather than broken conviction in the asset.