Two other supporters lined up behind the move. U.S. spot bitcoin ETFs have now drawn inflows for five straight sessions totaling more than $600 million, the most sustained institutional buying since mid-July and a reversal of the eight-week run of outflows that ran into late June.
And oil, which had risen for two days on the war, retreated, with Brent falling 1% to around $88.58, as Iran said brokers were circulating proposals to ease hostilities, including a reported proposal for a 10-day halt in strikes.
“Current bitcoin and ether prices are low but reasonable given the macro uncertainties affecting the markets,” said Jeff Mei, chief operating officer at BTSE, pointing to the Fed meeting as event traders are positioned around.
“Dealers expect prices to hold steady, but are looking for more signals of what’s to come later in the year,” Mei added.
The reading of that meeting is where the rally reaches its limit. The Federal Reserve meets on July 28-29, and markets are putting the odds of a July rate hike at around 15%, although a move from September is still alive.
Spot market volume across crypto products remained muted even as prices rose, the sign of a bond lifted by returning risk appetite rather than new conviction, and higher oil and Treasury yields remain the levers that could keep the Fed hawkish and limit risk assets.
