Bitcoin remained close to a two-week high after five sessions of gains.
The cryptocurrency benefited from softer monetary policy tightening expectations after weaker-than-anticipated US nonfarm payrolls data reduced forecasts to only one interest rate hike this year.
The latter weighed on Treasury yields and improved the outlook for risk assets such as Bitcoin. This week’s release of the FOMC minutes will be closely watched for further clues on how policymakers could drive monetary policy during the second half of the year.
However, institutional demand remains subdued, pressuring the cryptocurrency, which remains at a multi-year low. Spot Bitcoin ETFs recorded another week of net outflows totaling USD 526 million, marking another consecutive week of withdrawals.
Additionally, markets could continue to monitor Michael Saylor’s announcements and Strategy’s potential purchases, although the market’s reaction may be more muted than in the past following the company’s recently introduced policy, allowing for Bitcoin sales, which could leave the cryptocurrency exposed to downside risks.
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