Bitcoin Loses Upward Momentum Amid Anticipation of U.S. Inflation Data and NVIDIA Earnings
Bitcoin’s price fell below the $80,000 level today, after buyers failed to sustain upward momentum above this key psychological barrier, as investor appetite shifted toward U.S. stocks, while gold also retreated after hitting its highest level in more than three months.
Bitcoin (BTC) fell to around $78,800, marking a decline of nearly 2% over the past 24 hours, after successfully breaking above the $81,000 level during Tuesday’s trading.
This decline comes amid continued caution in financial markets, as investor attention has shifted from bond movements to U.S. inflation data and Nvidia’s earnings report, both of which could influence risk appetite in the markets.
Bitcoin Fails to Hold Above the $80,000 Level
Bitcoin struggled to maintain trading above the $81,000 level, which is an important psychological and technical threshold for traders.
As Wall Street opened, the world’s largest cryptocurrency gave up some of its gains, falling back below this level amid a rally in U.S. stocks and waning buying momentum in the cryptocurrency market.
This move suggests that the $80,000 zone continues to represent strong resistance for Bitcoin, as the price needs sustained buying demand to achieve a clear breakout and hold above this level.
Conversely, continued trading below $80,000 could lead to increased profit-taking and higher volatility in the cryptocurrency market in the coming period.
Gold’s Decline Coincides with Bitcoin’s Price
Drop Bitcoin was not the only asset under pressure; the price of gold also fell after hitting its highest level since mid-May.
Gold had climbed to around $4,697 per ounce before retreating, amid profit-taking and as investors awaited key U.S. economic data.
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The simultaneous decline in gold and Bitcoin reflects a temporary shift in investor flows, with part of the market favoring U.S. stocks amid improved risk appetite.
Falling U.S. Bond Yields Support Markets
U.S. Treasury yields fell, with the yield on the 30-year bond approaching a three-week low.
Investors typically monitor the relationship between U.S. bond yields and the price of Bitcoin, as falling yields can support high-risk assets by reducing the appeal of investing in bonds.
However, despite the decline in yields, the price of Bitcoin was unable to hold onto its gains above the $80,000 level, indicating selling pressure and profit-taking near this area.
Market attention is now turning to U.S. inflation data, which could play a key role in determining interest rate expectations, the dollar’s trajectory, and bond yields in the coming period.
Bitcoin ETF Inflows Continue for the Seventh Day
Despite the recent decline in Bitcoin’s price, Bitcoin exchange-traded funds (ETFs) on the U.S. spot market continued to record positive cash flows.
These funds continued their streak of inflows for the seventh consecutive day, signaling continued interest from institutional investors in the world’s largest cryptocurrency.
These inflows are particularly significant because they reflect continued investment demand for Bitcoin even amid a short-term price decline.
The continued inflow of liquidity into Bitcoin funds may help provide price support in the coming period, especially if buying demand picks up again near current support levels.
Ethereum Funds Attract Nearly $1 Billion in 7 Days
Positive inflows were not limited to Bitcoin alone, as Ethereum exchange-traded funds (ETFs) in the United States recorded positive cash inflows for the seventh consecutive day.
These funds added about $179.8 million during Tuesday’s session, bringing total inflows over seven consecutive trading days to nearly $1 billion.
These figures indicate continued institutional interest in the cryptocurrency market, despite recent price volatility in Bitcoin and other cryptocurrencies.
The continued inflows into Bitcoin and Ethereum funds may also reflect investor confidence in the medium and long term, even as short-term price pressures persist.
Inflation Data and Nvidia Earnings Shape Risk Appetite
Markets are awaiting the release of U.S. inflation data in the coming period, which will have a direct impact on monetary policy expectations and interest rates.
Lower inflation could reinforce expectations of monetary policy easing, which may support high-risk assets, including stocks and cryptocurrencies.
If, however, inflation data comes in higher than expected, expectations for persistently high interest rates may rise, which could support the dollar and put pressure on Bitcoin and other cryptocurrencies.
Markets are also watching Nvidia’s earnings report, as the company is a major player in the technology and artificial intelligence sectors, its results could influence the performance of tech stocks and investor appetite for high-risk assets.
Bitcoin Price Forecast: Will It Return Above $80,000?
The $80,000 level remains one of the most important levels traders are watching right now.
If Bitcoin succeeds in returning above this level and holding steady there, it could reignite buying momentum and support a continued uptrend toward $82,000 and then $83,000.
However, continued trading below $80,000 may indicate the need for further correction or sideways movement before a new attempt to rise.
Meanwhile, continued positive inflows into Bitcoin and Ethereum ETFs provide an important support factor for the cryptocurrency market, especially in the medium term.
