Bitcoin Rebounds, Focus Shifts to ETF Flows and the Fed
Bitcoin strengthened on Friday (May 29th), attempting to recover from the previous session's pressure as risk appetite improved following reports that the US and Iran were close to extending a 60-day ceasefire, although still awaiting President Donald Trump's final approval. In the European session, BTC traded around US$73,754, up around 0.7% on the day, with an intraday range of US$72,559–US$73,795.
This recovery occurred after a brief market “risk-off” when military escalation drove flows into defensive assets. With the emergence of de-escalation signals, pressure on oil eased and global equity markets stabilized, prompting a limited rotation into riskier assets, including crypto.
However, room for upside remains limited by the US interest rate narrative. High April PCE inflation data reinforced “higher for longer” expectations, preventing full interest in speculative assets from returning. The main transmission channel: high interest rates increase opportunity costs and suppress demand for non-cash-flow assets like crypto.
In altcoins, movement tends to improve as risk appetite rebounds. Ethereum is hovering around US$2,012, up about 1.3% today. The next market focus will be the consistency of geopolitical headlines and whether institutional flows (including Bitcoin spot ETFs) stabilize, as these two factors have recently become determinants of crypto volatility. (Arl)
Source: Newsmaker.id
