Bitcoin is currently changing hands around USD 83,420, marking a 0.53% decline over the past 24 hours amid a broader downturn across the cryptocurrency market. Market sentiment was dampened by increasing Treasury yields, rising oil prices, and geopolitical uncertainty.
At the same time, US spot Bitcoin exchange-traded funds (ETFs) pushed their ongoing inflow streak to nine consecutive trading sessions, pulling in nearly USD 3.1 billion across that timeframe.
Bitcoin Faces Pressure From Yields and Oil Prices
The drop in Bitcoin coincided with a 0.63% contraction in the overall crypto market capitalization. This retracement comes after a September rally that pushed prices to USD 87,374, leaving Bitcoin trading near the bottom of its current range against a backdrop of elevated energy costs and borrowing rates.
Geopolitical tensions in the Middle East, a robust US dollar, and climbing Treasury yields have accompanied the cryptocurrency’s recent softness. While higher yields elevate the attractiveness of interest-bearing assets, escalating oil prices threaten to amplify inflationary pressures and alter outlooks on monetary policy.
Kyle Rodda, a senior financial market analyst at Capital.com, attributed the pause in Bitcoin’s upward momentum directly to energy expenses. “The rise in crude prices is capping non-yielding assets,” he remarked to Bitcoin.com News, though he also characterized Bitcoin’s underlying technical structure as “quite constructive.”
According to Rodda, sustained upward risks in the energy sector could hamper Bitcoin’s ability to bounce back. In a similar vein, Utkarsh Ahuja, managing partner at Moon Pursuit Capital, noted that tightening financial conditions can swiftly impact digital asset prices. Both analysts emphasized that macroeconomic factors, rather than asset-specific issues, are driving the downward pressure on Bitcoin.
Bitcoin ETF Inflows Persist as Ether Funds Reverse
Data from SoSoValue indicates that US spot Bitcoin ETFs recorded USD 66.2 million in net inflows on Tuesday. This ninth straight positive session brings the cumulative total for the streak to approximately USD 3.1 billion, pushing total net inflows for the year to roughly USD 1 billion.
Tuesday’s inflows outpaced Monday’s roughly USD 31 million, though both days saw smaller allocations compared to the peak daily inflows observed during the height of the recent surge. While this slower pace points to reduced net additions to the funds, it does not signal an end to the positive streak or indicate that institutional accumulation has ceased.
Conversely, spot Ether ETFs experienced roughly USD 3 million in net outflows on Tuesday. These withdrawals halted a seven-session positive streak that had brought in more than USD 851 million, though cumulative net inflows for Ether products remain near USD 14 billion.
Earlier in the week, Zcash ETFs also saw a shift in momentum, posting USD 8 million in net outflows on Monday to conclude a six-day inflow run. These statistics highlight varying levels of daily demand across digital asset investment products, with Bitcoin maintaining net capital inflows while Ether and Zcash experienced capital outflows.
Bitcoin Trades Near Support as Momentum Remains Mixed
Immediate support for Bitcoin is situated between USD 82,600 and USD 83,000, tracking close to the local low of USD 82,555 recorded on Monday. A decisive break beneath this band could open the door to the USD 81,000 to USD 82,000 range, though these price points serve strictly as technical markers rather than guaranteed targets.
Facing upward, resistance zones start at USD 5,500 and stretch toward USD 86,200. Successfully clearing this threshold could refocus attention on USD 87,000 and the September high of USD 87,374.
Daily technical indicators present a mixed picture. Bitcoin continues to hold above several major long-term moving averages, and its relative strength index reads at 61. However, the moving average convergence divergence (MACD) metric flashes a bearish signal.
Concurrently, the Crypto Fear & Greed Index ticked down from 73 to 71. Market sentiment stays positioned in the “Greed” zone while the asset hovers underneath immediate resistance levels.
Also Read: Bitcoin vs Altcoins: How Trading Volume and Market Dominance Differ
