Bitcoin Rises to $90,000 but Still Awaits a Market Catalyst
Ongoing outflows from U.S. spot Bitcoin ETFs have intensified pressure on the leading cryptocurrency.
Quick overview
- The cryptocurrency market is experiencing mixed trading, with Bitcoin up 2.4% at $89,222 and Ethereum at $2,974.
- Altcoins like Solana and Dogecoin are also seeing mild gains, while concerns over U.S. spot Bitcoin ETF outflows are impacting Bitcoin's demand.
- Recent U.S. payroll data has created uncertainty regarding future interest rate cuts, affecting risk assets including cryptocurrencies.
- Major Wall Street indices are trading higher as investors await economic data and comments from Federal Reserve officials.
The cryptocurrency market is trading with a mixed tone and modest moves on Wednesday. Bitcoin (BTC) is up 2.4% at $89,222, according to Binance, while Ethereum (ETH) is trading at $2,974, with both assets posting gains.
Altcoins are broadly following the same pattern, recording mild advances. Solana (SOL) and Dogecoin (DOGE) are leading the gains, up around 1.5%, while most other tokens are rising by less than that.
Ongoing outflows from U.S. spot Bitcoin ETFs have intensified pressure on the leading cryptocurrency, as sustained withdrawals have raised concerns about weakening institutional demand. In this context, a key source of support that had underpinned Bitcoin’s rally earlier this year has faded.
At the same time, recent U.S. payroll data pointed to slower job growth alongside a gradual rise in the unemployment rate, failing to provide the Federal Reserve (Fed) with a clear signal of cooling that would justify interest rate cuts.
As a result, markets have become less confident about the pace of future rate reductions, a factor that has weighed on risk assets such as cryptocurrencies. Attention is now turning to U.S. inflation data due to be released on Thursday.
Traditional markets
Meanwhile, major Wall Street indices are trading higher in Wednesday’s premarket session, as investors await additional economic data to assess the trajectory of U.S. monetary policy and keep an eye on geopolitical tensions in Venezuela that have pushed oil prices higher.
Comments are expected later in the day from several influential Federal Reserve officials, including Governor Christopher Waller and New York Fed President John Williams, which could provide further clarity on the policy outlook.
In this environment, the S&P 500, which tracks the largest companies listed in New York, is up 0.34%, while the tech-heavy Nasdaq Composite gains 0.40%. The Dow Jones Industrial Average is also higher, rising 0.21%.
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