In its latest market review, cryptocurrency exchange Bitfinex suggested that Bitcoin’s upward momentum is starting to fade. Macroeconomic pressures, including slower corporate demand, dwindling expectations for interest rate cuts, and rising inflation, are reducing risk appetite across the market. These factors, the report noted, are increasing downside risks for Bitcoin’s price.
Price Struggles and Key Levels
Bitcoin opened the week at $82,160, but once again failed to break through a strong resistance zone between $80,000 and $83,000. Over the week, it lost around 4.6%, falling to test the $77,000 level again. Analysts pointed to geopolitical tensions and rising oil prices as contributing factors. They said holding near this monthly opening level is critical for any continued recovery.
ETF Outflows Signal Caution
The pullback wasn’t just in price. The report noted that U.S. spot Bitcoin ETFs saw net outflows of about $1 billion last week, ending a six-week streak of inflows. Even BlackRock’s IBIT ETF, offered by one of the world’s largest asset managers, was affected by institutional withdrawals. Additionally, a weakening in yield-generating products like STRC pointed to a simultaneous narrowing of demand sources in the market.
On-Chain Momentum Weakens
On-chain data also suggests weakening market momentum. Monthly capital inflows remain positive at around $2.8 billion, but that’s significantly below the $10 billion levels seen during strong bull markets. According to Bitfinex, this indicates that even as Bitcoin recovered toward $82,000, institutional investors haven’t shown enough confidence to absorb macroeconomic shocks.
Macroeconomic Headwinds
On the macroeconomic front, the “long-term high interest rate” scenario in the U.S. has regained strength. April’s CPI data rose to 3.8% year-on-year, showing that persistent inflation in the services sector, not just energy prices, is adding pressure. Real wage growth has turned negative. Long-term U.S. Treasury yields have reached their highest levels in recent years, and markets are pulling back expectations for interest rate cuts this year.
The report specifically highlighted disruptions in the Strait of Hormuz, which negatively impacted global oil supply. Brent crude oil prices rising above $100 per barrel added to inflationary pressures. Rising energy costs directly affect fuel, transportation, and consumer prices, weakening appetite for risky assets overall.
Positive Regulatory and Institutional News
Despite the headwinds, the report noted that regulatory developments and institutional expansion continue in the crypto sector. The U.S. Senate Banking Committee advanced the CLARITY Act, a move seen as a significant step toward clarifying the boundaries of authority between the SEC and the CFTC. Meanwhile, digital asset manager Bitwise launched a spot Hyperliquid ETF with integrated staking rewards, showing continued institutional interest in advanced crypto products beyond Bitcoin and Ethereum.
Still, Bitfinex warned that rising inflation expectations and increasing bond yields could add pressure on digital asset markets in the short term. Strong outflows from spot Bitcoin ETFs suggest investors are beginning to reduce their exposure to risky assets.
*This is not investment advice.
