Bitcoin Fails to Hold Above $80,000, ETF Flows and The Fed to Be Key

Bitcoin is moving again in the range of 78,000 US dollars after failing to hold above the psychological level of 80,000 US dollars. The next direction is considered to be determined by the flow of ETF funds and the monetary policy of the United States.

Bitcoin previously rose about 26 percent from $62,700 to touch $81,235. However, the largest crypto asset then corrected and moved back below $80,000.

FLOQ CEO and Founder Yudhono Rawis assessed that the correction had not changed the overall outlook for Bitcoin. However, the market must now prove whether investor demand is still strong enough to support prices.

"The Bitcoin rally throughout August shows that investor interest in crypto assets is still very strong. However, after failing to hold above $80,000, the market is now entering a proving phase," said Yudhono as quoted by Antara, Sunday, September 6.

According to Yudhono, the demand in the spot market and the flow of institutional investor funds are important indicators after the rally.

Bitcoin and Ethereum ETFs in the US recorded net inflows of around 2.71 billion US dollars in the week ending August 24. Bitcoin accounted for around 1.92 billion US dollars.

However, the flow of funds has begun to weaken. Farside Investors data shows that US spot Bitcoin ETFs recorded a net outflow of around US$201.9 million on August 28 after previously recording inflows for several days.