Investing.com reports a modest uptick in Bitcoin’s value on Thursday, rising by 0.4% to $77,756.2, as traders navigated a complex landscape marked by elevated Treasury yields and expectations of interest rate hikes, while also holding onto hopes for a potential peace agreement between the United States and Iran. This movement follows a five-day losing streak that Bitcoin managed to break the day prior.
Market analysts are noting that macroeconomic factors serve as the dominant short-term price drivers for Bitcoin. In the wake of a regulatory breakthrough in the U.S. Senate last week, the largest cryptocurrency has faced headwinds from a global bond sell-off and geopolitical uncertainties. According to Dessislava Ianeva, an analyst at Nexo Dispatch, U.S. spot Bitcoin ETFs have seen outflows totaling $1.84 billion over the past six sessions since the Consumer Price Index print on May 13, halting an inflow period that had contributed $4.4 billion from February to May.
Ianeva mentioned that Bitcoin experienced nine consecutive sessions of net selling amounting to approximately $1.2 billion before a small influx of $98 million from buyers on May 21 coincided with positive NVIDIA earnings news.
In other market developments, U.S. technology giant reported strong quarterly earnings in its after-hours session on Wednesday, surpassing both top and bottom-line expectations. However, the stock’s muted reaction on Thursday sparked concerns among investors about whether its hefty $5 trillion valuation is justified.
On the geopolitical front, a significant development emerged concerning U.S.-Iran relations, with reports indicating that a final draft of a peace agreement has reportedly been reached, mediated by Pakistan. The Iranian Labour News Agency (ILNA) cited information from Al Arabiya suggesting key provisions, including an immediate ceasefire and guaranteed navigation freedom in the Gulf and the Strait of Hormuz. Despite this, dissenting reports from Al Jazeera and the White House questioned the accuracy of these claims, calling them “propaganda.”
Additionally, developments within Iran signal growing tensions as the country announced the establishment of a new maritime regulatory body and a permit system for vessels wishing to transit through the strategically vital Strait of Hormuz, a channel through which a significant portion of the world’s oil and gas flows. This assertion of control comes amid ongoing conflict in the region that has severely disrupted oil supply, causing a surge in prices and inflationary pressures globally.
The Federal Reserve’s April meeting minutes have further fueled speculation regarding rate hikes, with a majority of policymakers expressing belief that increases may be warranted if energy prices continue to drive inflation beyond the central bank’s 2% target. This has thus sparked a steep global bond sell-off, although longer-end Treasury yields experienced a retraction after the ILNA report surfaced.
In the cryptocurrency sector, SpaceX revealed significant Bitcoin holdings through its IPO prospectus released Wednesday, signaling further institutional interest in digital assets. The company disclosed it possessed 18,712 Bitcoin as of March 31.
Moreover, Blockchain.com has taken steps towards an IPO filing in the United States, allowing the cryptocurrency exchange to strategically navigate preparations without immediate public scrutiny. The details regarding the number of shares or price range were not disclosed.
Meanwhile, altcoins reflected Bitcoin’s modest gains, with Ethereum increasing by 0.4% to $2,138.75, and Binance Coin rising by 0.8% to $1,376.9. Other coins also saw slight increases, while notable meme tokens gained traction with a 1.8% rise.
