Bitcoin is experiencing a challenging week, trading below the $94,000 mark on Thursday, following a decline of over 5% this week. In tandem with the cryptocurrency's dip, German Industrial Production and Eurozone Retail Sales data for November have been released. Despite expectations, these figures failed to bolster the Euro, which is currently trading at around 1.0300 against the US Dollar in the European session.
The demand for Bitcoin appears to be waning as evidenced by a significant outflow from Bitcoin US spot Exchange Traded Funds. On Wednesday, these funds recorded an outflow exceeding $568 million, indicating a potential downturn in investor interest. This comes at a time when the US Dollar is demonstrating sustained strength, further impacting Bitcoin's position in the market.
In Europe, the EUR/USD is struggling, maintaining a position on the back foot at approximately 1.0300. Concurrently, GBP/USD is consolidating near 14-month lows, hovering below 1.2300 during Thursday's European trading session. The UK bond market is witnessing a sell-off, pushing 10-year Gilt yields to their highest levels since August 2008. This bearish daily technical setup for GBP/USD underscores the extended strength of the US Dollar.
The robust demand for the US Dollar is a critical factor affecting both currency pairs and Bitcoin. Despite recent economic data from Europe, the Euro and British Pound are unable to gain traction against the formidable US Dollar. The attention now shifts to upcoming Fedspeak events, which may further influence market dynamics.