Bitcoin Further weakness in equities could damp demand, analysts at QCP Capital wrote in a note published Monday.
That may be on the cards
Both Nasdaq 100 futures and S&P 500 futures are lower, with companies including Coinbase Global “Broader equity deleveraging dynamics could transmit to cryptocurrency markets and potentially threaten the $80,000 support level if sustained,” the analsysts wrote. For the time being, the bitcoin price remains above that level after demand for the largest cryptocurrency picked up on Monday, as illustrated by the spot U.S. bitcoin Monday’s fund flows offer encouragement for bulls, though demand remains concentrated. The ETFs attracted roughly $527 million in net flows, with BlackRock’s taking in $665 million while those from Fidelity and Grayscale recorded withdrawals.
The ether ETFs lost $103.3 million, their fourth consecutive day of outflows, showing bitcoin-specific demand rather than demand for the wider crypto sector. Conversely, the analysts added, a continued Treasury rally could support risk assets, particularly alongside falling real yields and a weaker dollar. Even so, the macro backdrop leaves little room for complacency.