Bitcoin stabilised to some extent on Thursday amid improving risk sentiment overall and a rebound in stock markets and AI stocks.
While the cryptocurrency rose slightly after falling to multi-month lows in the previous session, long liquidations continued to outweigh short liquidations over the past 24 hours, maintaining a bearish bias.
The broader backdrop remains challenging. Bitcoin continues to be subject to significant institutional selling, with spot Bitcoin ETFs recording a substantial outflow of USD 469 million on Wednesday, one of the largest daily withdrawals this month. Monthly net outflows have now exceeded USD 2.9 billion.
On the macroeconomic side, conditions also remain unfavourable. Expectations that the Federal Reserve and several other major central banks will maintain a hawkish policy stance continue to support bond yields, reducing Bitcoin’s appeal as a non-yielding asset.
Attention now turns to today’s US PCE inflation report, which could influence interest rate expectations. A stronger-than-expected reading would reinforce the case for restrictive monetary policy and could extend pressure on Bitcoin, while softer inflation could provide support for risk assets.
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