Bitcoin continued to consolidate on Wednesday

(MENAFN- MENAFNEditorial) Hell
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Greetings, trust this email finds you well, please find below market comment on behalf of Ranim Turfa Head of Research and Market Analysis - MENA at Tickmill

Bitcoin continued to consolidate on Wednesday as traders adopted a cautious stance ahead of major US technology earnings and next week's Federal Reserve decision. Renewed optimism around AI-related investment following better-than-expected SpaceX results has supported broader risk appetite, providing some support to Bitcoin.

Institutional demand has also improved. Spot Bitcoin ETFs attracted USD 23 million on Tuesday, marking a second consecutive session of inflows after USD 527 million on Monday, the strongest daily intake in nearly a month. The broader picture remains fragile, however, with October still showing net outflows of around USD 64 million after approximately USD 2.6 billion of inflows in September. A more sustained recovery in ETF demand would therefore be needed to provide a stronger foundation for a breakout.

Global monetary policy remains the main constraint. Although markets expect the Federal Reserve to leave interest rates unchanged next week, they continue to price in further tightening over the coming months. A similarly restrictive bias remains in place across the ECB, Bank of Japan and Bank of England, all of which are due to make monetary policy decisions starting next week. That concentration of central-bank meetings could generate significant volatility across global bond markets and, in turn, cryptocurrencies.

At the same time, persistent uncertainty in the Middle East is also keeping oil prices elevated, sustaining inflation concerns and providing support to yields. The latter could continue to weigh on non-yielding assets like cryptocurrencies.

Looking ahead, today's earnings from major technology companies, including Meta and Tesla, could set the near-term tone for risk sentiment. Strong guidance would reinforce confidence in the AI investment cycle and support risk appetite.
Attention will then turn to Thursday's jobless claims and Friday's preliminary US activity data. Stronger figures could rebuild expectations for further tightening, push yields higher and weigh on Bitcoin. Until institutional inflows strengthen or the interest rate outlook becomes more supportive, Bitcoin is likely to remain within its recent range.

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