Bitcoin (BTC) price: Selloff likely as demand falters and 'real' interest rates surge
Bitcoin's price rally may be limited as demand weakens, indicated by cooling ETF inflows and rising real interest rates.Summary
Bitcoin faces potential headwinds due to rising U.S. real yields, particularly on 10-year TIPS, which makes the zero-yielding asset less attractive. Inflows into spot Bitcoin ETFs have slowed, and stablecoin growth has stalled, signaling reduced institutional and fresh fiat demand. Bitfinex's absorption-to-emissions ratio (AER) has significantly decreased, indicating a deterioration in demand relative to miner issuance. Analysts suggest a sustained rally requires strong, consistent inflows similar to those seen in late 2024 and early 2025. The increase in real yields, driven by geopolitical events and market conditions, is pulling capital away from risk assets like Bitcoin, and this trend is expected to continue as financial conditions tighten.
(Source：CoinDesk)