Bitcoin hits $81,475 as yields drop and Fed hints pause
Bitcoin jumped as much as 5.7% on Thursday and was up about 5.3% to $81,475 in late New York trading on Thursday, its highest since May.
The boost came as US Treasury yields dropped and the dollar weakened, plus some positive vibes from a Fed official hinting at a pause on interest rate hikes if inflation keeps cooling.
Still, Bitcoin hasn't managed to break out of its trading range since August.
Bitcoin demand uneven as ETFs fluctuate
Even with all the buzz, Bitcoin's momentum could stall because investor demand is pretty uneven right now.
U.S.-listed Bitcoin ETFs saw big inflows during the rally, about $290 million daily, but recent outflows show interest is shaky.
Senior research analyst at Nansen Jake Kennis says that unless Bitcoin consistently closes above $82,000 and ETF inflows steady up, it's unlikely to break free from its current rut.
Bitcoin long-term holders may sell $83k-$86k
There's also another hurdle: long-term holders might start selling if prices hit between $83,000 and $86,000, which could cap further gains.
Plus, much of this rally was driven by traders covering their shorts, not exactly a sign of lasting strength.
For context, even after this jump, Bitcoin is still 35% below its all-time high from last October.