According to Thielen, traders are missing the key point that BTC’s failure to move lower despite the hawkish Fed is itself a bullish signal.
“Traders are underestimating the upside risk from a less hawkish Fed, and overlooking the possibility that the four-year cycle has already bottomed,” he noted.
Other market watchers point to erratic demand for ETFs, a preferred vehicle of institutional investors, as the reason for BTC’s underperformance. These U.S.-listed funds registered an outflow of $61.53 million, snapping an equally anemic three-week streak of inflows, according to data source SoSoValue. This week, they have pulled in $626 million in investor money, the highest tally since early May, but that trend needs to hold.
“Several consecutive days of inflows will be needed to confirm a sustained recovery in institutional demand,” Vikram Subburaj, CEO of India-based FIU-registered Giottus.com, said in an email. For now, he’s…
