Bitcoin Slips Below $78,000 as ETF-Led Surge Loses Steam

Bitcoin pulled back Friday afternoon, giving up part of a sharp rally that had been powered by fresh demand for spot ETFs. As of Friday afternoon in New York, the cryptocurrency traded at $77,379, down more than 3% over the past 24 hours, after touching $81,281 earlier in the week. Risk appetite cooled after Federal Reserve Chair Kevin Warsh, in his first major speech since taking office, said "more work remains" to bring inflation under control. Flows into U.S. spot Bitcoin ETFs had been a key driver of the recent advance. The products posted net inflows of $1.14 billion this week, taking cumulative inflows to more than $3 billion over the past nine days, led by BlackRock's iShares Bitcoin Trust. Bitcoin also found support last week after the U.S. Treasury said it would double the size of its liquidity-supporting repurchase operations. Analysts say the move in Bitcoin aligns with a "currency debasement trade," as investors look for hedges against currency depreciation and heavy government spending. U.S. national debt topped $40 trillion for the first time this month, sharpening concerns about the erosion of fiat purchasing power.