Two other supports lined up behind the movement. U.S. spot Bitcoin ETFs have now attracted inflows for five consecutive sessions totaling more than $600 million, the most sustained institutional buying since mid-July and a reversal of the eight-week outflow that ran through the end of June.
And oil, which had climbed during two days of war, retreated, with Brent falling 1 percent to around $88.58 as Iran said mediators were circulating proposals to ease hostilities, including a suggestion of a halt to strikes for 10 days.
“Current bitcoin and ether prices are low but fair, given the macroeconomic uncertainties engulfing the markets,” said Jeff Mei, chief operating officer at BTSE, who pointed to the Fed meeting as the event traders are positioning themselves around.
“Traders expect rates to remain stable, but are looking for more signals on what will happen later in the year,” Mei added.
Reading this meeting is when the rally reaches its limit. The Federal Reserve will meet on July 28-29 and markets are pricing the chance of a July rate hike at around 15%, although a September rate hike is still on the table.
Crypto spot market volume remained subdued even as prices rose, a sign of a band lifted by returning risk appetite rather than new conviction, and rising oil and Treasury yields remain the levers that could keep the Fed hawkish and cap risk assets.
