Capital costs, not price, drive Strategy's Bitcoin buys, says CEO
Strategy CEO Phong Le says Bitcoin purchases are based on capital costs, not price. He expects the rally to continue.
Bitcoin ETFs saw $924M in net inflows last week, but BTC remained below $80,000 due to hawkish Fed comments and technical resistance.
US spot Bitcoin (BTC) exchange-traded funds (ETFs) recorded net inflows of $924 million from Aug. 24 to Aug. 28. The iShares Bitcoin Trust (IBIT) from BlackRock led with $938 million, according to SoSoValue. Despite this demand, bitcoin's price remained below the $80,000 threshold.
Over the same period, spot Ether (ETH) ETFs attracted $824 million. BlackRock's ETHA fund also led in that category, extending its inflow streak to ten consecutive trading days. Both products drew strong institutional demand even as bitcoin struggled to hold its recent gains.
The stagnation is largely attributed to the Federal Reserve. Fed Chair Kevin Warsh delivered a hawkish keynote at the Jackson Hole Economic Policy Symposium on Aug. 28. He warned that inflation remains a bigger concern than the labor market and did not rule out a rate hike. Following his remarks, bitcoin slid from around $79,500 to below $77,000. Traders increased their expectations of a rate hike at the Fed's September meeting.
Bitcoin also faces a longer-term technical hurdle. On-chain analytics firm CryptoQuant has highlighted a bull market confirmation signal tied to bitcoin's 365-day moving average, which is near $83,000. BTC has repeatedly failed to close above that level, despite rallying from the mid-$60,000s.
The nine-day Bitcoin ETF inflow streak that fed into last week's total ended on Aug. 28. On that day, funds recorded a net outflow of $201.81 million. Even so, August remains 2026's strongest month on record for these products, with net inflows surpassing $3 billion.
Whether bitcoin can convert renewed ETF demand into a decisive break above $80,000 may depend on the Federal Reserve's next moves. A daily close above its 365-day moving average would also assist, a feat bitcoin has not achieved since the rally began.
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Disclaimer: this article comes from third-party media and is provided for reference only. It does not constitute investment advice. Crypto and other financial products carry significant price volatility risk, so please make your own decisions carefully.
Strategy CEO Phong Le says Bitcoin purchases are based on capital costs, not price. He expects the rally to continue.
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