Bitcoin retreated slightly after hitting a multi-month high. The cryptocurrency recently benefited from improving regulatory developments and several days of strong inflows into spot ETFs.
However, the momentum moderated as investment flows slowed significantly during the previous session, declining from USD 467 million on Tuesday to USD 46 million on Wednesday.
While this extends the positive streak, the sharp slowdown compared with previous sessions may indicate that investor demand is becoming less aggressive as prices approach technically stretched levels.
Attention is increasingly shifting toward potential policy catalysts. Markets are awaiting further details from the White House regarding the US Strategic Bitcoin Reserve, a development that could reinforce confidence in Bitcoin and strengthen long-term demand expectations.
At the same time, improving sentiment around Middle East negotiations has helped reduce oil prices, easing inflation concerns and pushing Treasury yields lower, reducing pressure on non-yielding assets. Progress on the geopolitical front could also favour appetite for risk assets, including bitcoin.
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