Bitcoin Struggles to Sustain Rally Amid Weak US Demand and Hawkish Fed Signals
Bitcoin has failed to maintain a strong breakout above $80,000 as inconsistent demand from U.S. investors continues to cast doubt on the sustainability of its recent rally. Inflows into U.S.-listed spot Bitcoin ETFs have been uneven in August, with notable outflows occurring over the past week. The negative Coinbase premium—comparing prices between domestic and international exchanges—for more than four months further indicates weak local demand. The market's uncertainty is compounded by a shift toward less supportive macroeconomic conditions following a hawkish speech from Federal Reserve Chairman Kevin Warsh at Jackson Hole, reigniting expectations of potential rate hikes. The Fed’s upcoming policy meeting on September 15 and 16 adds to the cautious outlook for Bitcoin. Analysts also note that much of August's price increase may have been driven by short covering rather than strong buying interest. Glassnode reports suggest long-term holders are likely to sell around $83,000–$86,000, creating a potential ceiling below the profit-taking zone. With positioning close to flat and technical indicators pointing toward support in the mid-to-low $70s, Bitcoin's next move remains uncertain.
Tickers: $COIN
Topics: Bitcoin ETF inflows/outflows Federal Reserve policy US demand trends