Bitcoin extended its positive run last week with a minor 1% weekly gain marking its fourth straight weekly advance for the first time since April. Even so the rally showed signs of losing momentum after a sharp midweek reversal weakened buying pressure.
The cryptocurrency climbed to a weekly high of $67,000 on Tuesday before dropping 5% as short-term holders sold near their breakeven level. The decline reinforced resistance overhead and showed that buyers are still struggling to push Bitcoin beyond its recent trading range.
Institutions Are Slipping Away Darkly 🖤
According to the latest Bitfinex Alpha report the short-term holder cost basis has stabilized near $68,500. The metric had gradually moved closer to spot prices over the past month. Analysts said this level has become a key resistance area that will likely require stronger demand for Bitcoin to break above it.
So far that demand has remained limited despite recent ETF inflows. The report said institutional participation continues to weaken. Specifically CME Bitcoin futures fell below $6 billion while options reached a September 2023 low.
ETF flows also reflected that softer demand beneath the surface. Despite this US spot Bitcoin ETFs recorded a third straight week of net inflows totaling $33.9 million. However they also saw $465.2 million in outflows on Thursday and Friday while BlackRock’s IBIT turned net negative.
Macro Shadows Creep In On Bitcoin 🌙
Another sign of softer institutional participation is the Coinbase Premium Index which has remained below zero for more than 60 consecutive trading days. Bitfinex described current market conditions as a typical summer slowdown with 30-day spot trading volumes at just 62.4% of their yearly average 👀.
Beyond weaker market activity broader economic conditions are adding uncertainty to Bitcoin’s outlook. Rising US diesel prices continue to pressure transport and production costs raising the risk that inflation could remain elevated 🔥.
Meanwhile higher inflation could complicate the Federal Reserve’s policy path while futures markets assign about a one-in-three chance of a rate hike at this week’s FOMC meeting 💸.
The report also noted that the US 10-year real yield has climbed to 2.43% approaching a level that could pressure risk assets. As a result Bitcoin remains range-bound between $63,000 and $68,500 awaiting stronger demand or fresh catalysts 🌑.
Just another echo from the void by iconofsin.eth 💖
