Bitcoin (BTC) slipped on Wednesday after failing earlier in the week to secure a close above a key resistance level. Institutional flows have been mixed, with inflows and outflows alternating throughout the week.
The decline comes after another unsuccessful push above $94,500 on Tuesday, marking the third failure in the past five weeks. Losses were steeper across the altcoin space, where PENGU and XRP led the downturn, falling 6.5 percent and 3.5 percent, respectively, since midnight.
Bitcoin was trading 1.76 percent lower at $92,065 as of 1:40 GMT, while Ether lost 0.58 percent to $3,215.65.
Institutional flows mixed
Institutional flows have been mixed so far this week, with Bitcoin spot ETFs posting alternating inflows and outflows. Inflows of $697.25 million on Monday were followed by outflows of $243.24 million on Tuesday, according to SoSoValue data.
The swings underscore continued indecision among institutional investors, as volatile ETF activity points to a cautious stance toward the world’s largest cryptocurrency by market capitalization.
Heightened geopolitical uncertainty, coupled with caution ahead of key U.S. economic data releases, dampened risk appetite across markets.
Risk appetite remains muted amid geopolitical tensions
Crypto assets found little support from MSCI’s decision not to move forward with a proposal to exclude crypto treasury companies from its indexes, with the announcement providing only limited relief to sentiment.
Shares of Strategy Inc., the world’s largest corporate Bitcoin treasury, jumped on Tuesday following MSCI’s decision. However, the equity gains did not lift crypto prices, which remained range-bound despite a slightly positive start to the year.
Risk appetite stayed muted amid rising geopolitical tensions, including a worsening China-Japan diplomatic dispute, and as markets awaited more clarity on U.S. plans regarding Venezuela. Traders were also cautious ahead of key U.S. economic data releases this week.
