Bitcoin needs ETF demand to hold as Fed rate hike risk grows: analysts

Bitcoin’s ability to extend its August rally has come under a fresh test as analysts have pointed to sustained spot ETF demand as a key requirement for overcoming rising expectations of a September Federal Reserve rate hike. Summary Bitcoin is trading near $78,700 after retreating from last week’s high above $81,000. Bitfinex analysts say spot buying and relatively contained leverage suggest the market is not showing signs of overheating. CoinEx’s Jeff Ko sees $80,000–$83,000 as a major supply zone where real capital allocation will be tested. BTSE’s Jeff Mei says ETF demand needs to remain strong across multiple funds, while softer inflation could ease pressure from the Fed. U.S. labor and inflation data will be closely watched before the Fed’s Sept. 15–16 meeting. According to Bitfinex analysts in an Aug. 31 market report shared with crypto.news, Bitcoin’s latest advance has relied increasingly on spot demand rather than excessive leverage, leaving the market in a stronger position to absorb selling even as U.S. monetary conditions become less supportive. According to data from crypto.news, Bitcoin (BTC) price was trading around $78,700 at the time of writing, down about 0.4% ove...