Bitcoin vulnerable to macro shocks amid lull in institutional demand

Bitcoin is losing its upward momentum and becoming more vulnerable to external shocks and a prolonged high-interest rate regime as the U.S. macroeconomic environment shifts, according to a report from Bitfinex Alpha. The report notes that key drivers of Bitcoin demand, such as spot ETFs and income-generating products like Strategy's STRC, are facing headwinds. "As market sentiment shifts from extreme fear to persistent uncertainty, the sustainability of the current recovery depends almost entirely on whether new net capital inflows continue," analysts explained.