Bitcoin Rides Risk Roller Coaster as Sepeculative Bets Wind Down

Bitcoin remains highly sensitive to shifts in risk appetite as speculative positioning unwinds and investors reassess exposure to volatile assets. Attention is focused on the Federal Reserve’s inflation data, particularly the gauge used to inform monetary policy, because signs of persistent inflation could delay rate cuts and pressure Bitcoin. Conversely, softer inflation could support liquidity and risk-taking, offering Bitcoin relief. The near-term outlook therefore hinges more on macroeconomic expectations and Fed policy than on Bitcoin-specific developments.