Bitcoin paused on Wednesday after Tuesday’s rally. The latter temporarily lifted prices above USD 96,000, the highest level in several months.
Profit-taking fuelled today’s pullback. Meanwhile, institutional support seems to be returning.
Spot Bitcoin ETFs recorded USD 753 million in inflows on Tuesday, marking a second consecutive day of positive flows and the largest daily inflow since early October. Ethereum ETFs mirrored this improvement, attracting USD 130 million.
From a legal perspective, sentiment was additionally supported by renewed progress on US crypto regulation.
Draft legislation unveiled by the Senate would establish a clearer regulatory framework for digital assets, defining when tokens fall under securities or commodities laws. The proposal reduces long-standing regulatory uncertainty and could improve institutional participation over time.
At the same time, expectations around monetary policy could continue to provide support. Two additional interest rate cuts are expected later this year and could boost non-yielding assets such as Bitcoin. However, expectations could continue to change in reaction to new economic data releases, such as the PPI data today and job market reports tomorrow.
