Bitcoin traded near USD 108,000 on Wednesday, with the market showing signs of uncertainty as traders continued to react to mixed macro signals.
Liquidation data maintains a slightly bearish tone, with USD 354 million in long positions liquidated over the past 24 hours versus USD 298 million in shorts, indicating that investors remain sensitive to downside swings and are quick to take risk off the table.
However, there are emerging signs of potential support. After four consecutive sessions of outflows, US spot Bitcoin ETFs recorded USD 477 million in inflows, the strongest reading since early October. Should this trend continue, Bitcoin could recover and stabilize.
Additionally, developments pointing to a possible easing in US-China tensions have helped improve the broader risk backdrop, supporting riskier assets. A similar easing in tensions with India could also support risk-on sentiment.
Traders could remain cautious ahead of the CPI release later this week. The latter could affect monetary policy expectations and could drive volatility.
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