Bitcoin Price Faces Uphill Battle Despite Recent Gains

Bitcoin's price has shown signs of life in recent weeks, with a seven-day high of $65,501 reached earlier this week. However, experts warn that the road to recovery will be long and arduous. The current macroeconomic headwinds, including rising oil prices and the US bombing Iran, are expected to keep inflation high, making a rate cut unlikely.

The dominant picture is that the current setup is prompting interest in adding positions, but caution prevails while sentiment remains broadly negative.

Despite a $287 million influx into crypto funds last week, the overall sentiment remains broadly negative. Investors have been pulling out of funds giving crypto exposure at an unprecedented rate, with $8 billion withdrawn in the worst run on record. However, the recent influx of money into crypto funds has sparked interest in adding positions, with caution prevailing.

The leading cryptocurrency is now nearly 50% below its record high of $126,080. Experts warn that Bitcoin's price may struggle to make gains, especially with the current economic landscape. The recent gains are likely to be short-lived, with the price of oil expected to continue surging, further dampening investor sentiment.