Analyst: BTC price depends on inflation, rates, institutional capital

Bitcoin's next upward trend will be determined by three key factors: inflation, central bank policy, and institutional capital inflows, according to Max Kahn, CEO of digital asset investment advisory firm Wells Partners. With Bitcoin currently trading around $74,000, both macroeconomic variables and structural demand are influencing its price, Kahn explained. He noted that approximately $523 million has entered the market in April, primarily through ETFs, establishing a sustained institutional demand not seen in previous cycles. Inflation and interest rate outlooks are particularly critical variables. If inflationary pressures rise, driven by factors like increasing energy prices, expectations for interest rate hikes could grow, potentially dampening demand for risk assets. Conversely, if prices stabilize, it could foster expectations for more accommodative monetary policy, which would likely boost demand for risk assets such as Bitcoin.