Bitcoin Rally Loses Steam as Macro Risks Return
The token fell as much as 2.3%, even as US spot funds posted their strongest weekly inflows since October.
Bitcoin briefly fell to $82,568 on Monday, down as much as 2.3%, as renewed macro uncertainty weighed on cryptocurrencies. By 11:40 UTC, it was at $83,041, down 2.14% over 24 hours.
Ether slid as much as 1.9%, while Solana dropped 3.9%. The declines came as investors reacted to President Donald Trump rejecting Iran’s latest proposal to reopen the Strait of Hormuz and oil extending its gains.
Markets are also weighing the Federal Reserve’s interest-rate increase earlier this month. Traders have begun pricing in a meaningful chance of another hike in October.
The pullback followed a rally that briefly took Bitcoin above $87,000 early last week. US spot Bitcoin exchange-traded funds drew about $2.4 billion in the week ended Sept. 25, their biggest weekly inflow since the period ended Oct. 10.
Richard Galvin, executive chairman at crypto investment firm DACM, said recent weakness did not mean the rally lacked conviction, given the strength of its late gains.
Bitcoin has risen about 28% since Aug. 19, when the US Treasury said it would increase buybacks of long-dated bonds. It is on track for its strongest quarter since the fourth quarter of 2024, but remains below its October high.
Damien Loh, chief investment officer at Ericsenz Capital, said a favorable broader macro environment would likely be needed for Bitcoin to break its 2026 highs. Higher Treasury yields can make assets that do not pay interest, such as Bitcoin, less attractive.
This article was produced with the help of AI technology.
Source: Yahoo Finance
