Bitcoin Struggles Below $64,000 Amid Rising Inflation Fears

Bitcoin is trading under $64,000 this week as a combination of geopolitical tension and macroeconomic headwinds weighs on the market. Stalled negotiations between the United States and Iran have pushed oil prices higher, sparking fresh concerns about inflation. As energy costs rise, investors are increasingly worried that the Federal Reserve might implement another interest rate hike to cool the economy.

Institutional demand, which has been a primary driver for the crypto market, also saw a dip this week. US spot Bitcoin ETFs reported $144.67 million in net outflows on Monday, which put an end to a five day streak of positive inflows. While a single day of selling does not always signal a long term trend, the sudden lack of interest from traditional investors is contributing to the recent price decline.

Technically, Bitcoin is currently struggling to regain its footing above key moving averages. The 50 day exponential moving average sits at $64,625, serving as a significant resistance level that buyers must reclaim to shift momentum. If the price fails to hold support at $62,345, the asset may be at risk of a deeper correction toward the $57,800 level seen earlier this summer.

Traders should keep a close watch on incoming economic data and further developments in the energy sector. Until Bitcoin can clear its immediate resistance barriers, the market remains in a cautious, wait and see state.