Bitcoin briefly crossed $60,000 again on Wednesday, but don’t pop the champagne just yet. The rally came after Fed Chair Kevin Warsh talked about stubborn inflation, and traders took it as a signal.
The problem? A lot of forces are working against BTC right now. Spot Bitcoin ETFs are seeing steady outflows. The US dollar is strengthening. And Treasury yields jumped to 4.22%, meaning investors can get decent returns without touching crypto at all.
Gold’s down 12% in two months. That’s not great company for Bitcoin.
The CME FedWatch tool now shows 64% odds of a rate hike by September. A month ago that number was just 23%. Higher rates mean tighter money, and tighter money means less appetite for risk assets.
AI stocks are also stealing the show. The Nasdaq 100 is up 25%, pulling capital away from non-yielding assets like Bitcoin and gold. Some AI sub-sectors showed weakness this week — Micron and SanDisk shares dropped over 9% — but it’s too early to call it a trend reversal.
Strategy (formerly MicroStrategy) boosted its cash position to 17 months of dividend coverage. But its STRC preferred stock still trades well below the $100 target, and the dividend yield has climbed to 12% to attract buyers.
Bitcoin is now 53% below its all-time high. The $60,000 level isn’t looking like a solid floor. Analysts say a sustainable move to $65,000 could take a while, especially with rate hike fears hanging over the market. If you’re betting on a quick recovery, you might be waiting longer than expected.
