Bitcoin edged lower on Monday, trading close to a two-month low as outflows from spot ETFs continued.
ETF funds recorded net outflows of USD 411 million on Friday, a second consecutive session of strong withdrawals, taking November’s total to USD 1.28 billion.
Liquidations of USD 305 million over the previous 24 hours, mostly long positions, added to the decline.
Treasury yields stabilized to some extent, but remained elevated, reducing non-yielding assets’ appeal. With markets still pricing in a Federal Reserve interest rate hike in December after last week’s strong jobs report, further gains in yields could add to the pressure.
Tomorrow’s US inflation data is the next test. A firmer reading could strengthen expectations of further tightening next year, push yields higher and extend Bitcoin’s losses. Softer figures could ease pressure on yields and encourage institutional buyers to return.
Geopolitical developments could also play a crucial role in shaping Bitcoin’s direction. Hopes for diplomatic progress have helped keep oil prices under pressure, easing global inflation concerns and limiting upward momentum on yields. However, no agreement has been signed, leaving uncertainty in place. A renewed escalation could revive safe-haven demand and weigh on risk assets such as Bitcoin.
Leave a Comment