Market Analysis by Quasar Elizundia, Expert Research Strategist at Pepperstone 371l48
“Bitcoin fell for the third consecutive session on Thursday, trading slightly near the USD 107,500 level amid macroeconomic uncertainty and a cautious Federal Reserve. The latest Fed minutes signaled caution regarding potential rate cuts, prompting markets to scale back expectations for monetary easing, ing US yields and weighing on risk-sensitive assets like Bitcoin.
The latest US economic data reinforced this cautious outlook. Preliminary estimates showed a 0.2% GDP contraction in Q1, the first quarterly decline in three years, while corporate profits fell by 3.6%, marking the steepest drop since 2020. These signals of weakening growth and profitability add further pressure on equities and crypto markets.
At the same time, liquidation data points to increased fragility. Over the past 24 hours, long liquidations exceeded short position liquidations, potentially amplifying downside pressure.
Despite this backdrop, institutional demand for Bitcoin remains robust. ETFs recorded USD 432 million in net inflows on Wednesday and USD 385 million on Tuesday, extending a streak of positive flows since May 14. Cumulative inflows have now reached an all-time high of USD 45.3 billion, underscoring continued appetite for regulated Bitcoin exposure.”
