Bitcoin pushed to fresh multi-month highs before pulling back, as broader markets remained cautious amid ongoing geopolitical uncertainty in the Middle East.
The latter could limit risk appetite and could weigh on the cryptocurrency, while any clear progress toward a resolution could fuel demand for risk assets, including cryptocurrencies.
At the same time, investment flows improved to a certain extent. Last week, spot Bitcoin ETFs recorded roughly USD 160 million in net inflows, with Friday alone accounting for over USD 600 million. If sustained, these flows could allow Bitcoin to remain resilient, even in a fragile global environment.
Macro conditions also remain a constraint. More cautious messaging from central banks, combined with expectations that interest rates will remain unchanged or potentially rise in some regions of the world, continues to support yields across the globe and weigh on bitcoin. Consequently, the cryptocurrency may face increased selling pressure in the upcoming sessions if geopolitical risks increase or economic data shows signs of stronger inflation.
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