Bitcoin needs ETF demand to hold as Fed rate hike risk grows: analysts

Analysts warn that growing risk of Federal Reserve rate hikes increases downside pressure on Bitcoin by tightening liquidity and boosting correlation with risk assets. They say sustained demand from spot Bitcoin ETFs will be necessary to absorb selling and act as the primary source of support for prices in a higher-rate environment. Without continued ETF inflows, Bitcoin could face increased selling pressure and volatility as macro conditions deteriorate.