Tuesday, 02 January 2024 12:17 GMT

markets analysis on behalf of Christopher Tahir - Senior Market Strategist at Exness


(MENAFN- Your Mind Media ) Bitcoin remained relatively stable as investors continued to react to geopolitical developments and monetary policy expectations. Hopes of progress in ongoing negotiations in the Middle East have supported broader market sentiment, which could contribute to lower bond yields globally and improve conditions for risk assets. However, optimism remains measured given the repeated cycle of progress and setbacks that has characterised negotiations in recent weeks.
In the US, the macro picture remains a source of risk as the latest Federal Open Market Committee minutes presented a more cautious tone from policymakers. The latter could create potential headwind for non-yielding assets such as Bitcoin as Treasury yields remain elevated.
In addition, investment flows remained weak. Spot Bitcoin ETFs have registered another day of negative flows, bringing the weekly outflows to around USD 1 billion. Looking ahead, Bitc’in’s direction is likely to remain closely tied to geopolitical headlines and whether investment flows stabilise.

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