Crypto
Home›Crypto›Market Structure›Bitcoin slips more than 3% after Fed chief flags infla…
Bitcoin slips more than 3% after Fed chief flags inflation risk
Bitcoin traded around $77,379 in New York after falling over 3% in 24 hours, following a surge tied to U.S. ETF inflows.
Bitcoin cooled off Friday after a sharp run that had been boosted by U.S. exchange-traded fund demand, as the Federal Reserve chief warned inflation remained too hot. According to Bitcoin Magazine, the leading cryptocurrency dropped more than 3% over a 24-hour period and was trading at $77,379 in New York late Friday afternoon.
Bitcoin had reached a weekly high of $81,281 but eased after Fed Chair Kevin Warsh delivered his first major speech as central bank head, saying he had “more work to do” to fight inflation. The article notes bitcoin has historically fallen when markets expect the Fed to keep rates tighter, reducing the odds of rate cuts and weighing on non-yielding assets.
Bitcoin’s surge was linked to large ETF inflows and broader liquidity dynamics, with the article citing U.S. ETF buyers’ contribution to the momentum. Bitcoin Magazine says bitcoin started surging last week after the U.S. Treasury signaled it would at least double liquidity-support buyback operations, a move that pressured the dollar while benefiting non-yielding assets.
The piece also points to sustained inflows into major bitcoin ETFs, citing Farside Investors data. It says inflows have continued for nine straight days, with U.S. bitcoin ETFs bringing in $1.14 billion this week and more than $3 billion added over the prior nine days, including strong participation from BlackRock’s iShares Bitcoin Trust and inflows into Morgan Stanley’s new Bitcoin Trust.
Latest closeBitcoin $77,785.62 ▼3.1%