Bitcoin posted its fourth consecutive weekly gain for the first time since April, but weakening demand and fading momentum are raising questions about whether the recent recovery can continue.
The leading cryptocurrency ended last week up just over 1%, extending its winning streak. However, optimism faded after a sharp reversal midweek, suggesting buyers are struggling to sustain the rally.
Bitcoin briefly climbed to $67,000 on Tuesday before falling roughly 5% as short-term holders took profits near their cost basis. The rejection reinforced resistance in that area and highlighted the market’s difficulty in breaking above its recent trading range.
Institutional Interest Continues to Weaken
According to the latest Bitfinex Alpha report, the short-term holder cost basis has stabilized around $68,500, a level analysts now view as significant resistance. They believe Bitcoin will need stronger buying pressure to move decisively above it.
That demand has yet to materialize despite continued inflows into spot Bitcoin ETFs. Institutional activity remains subdued, with CME Bitcoin futures open interest slipping below $6 billion and options activity dropping to its lowest level since September 2023.
ETF data also reflects the cooling demand. Although U.S. spot Bitcoin ETFs recorded a third consecutive week of net inflows totaling $33.9 million, the funds experienced $465.2 million in net outflows on Thursday and Friday alone. Even BlackRock’s IBIT finished the period with negative net flows.
Macro Headwinds Keep Bitcoin Stuck in Range
Another indication of weakening institutional appetite is the Coinbase Premium Index, which has stayed below zero for more than 60 straight trading days. Bitfinex described the current environment as a typical summer slowdown, noting that 30-day spot trading volume is only 62.4% of its annual average.
Outside the crypto market, broader macroeconomic pressures continue to cloud Bitcoin’s outlook. Rising diesel prices in the U.S. are increasing transportation and production costs, fueling concerns that inflation could remain stubbornly high.
Persistent inflation may complicate the Federal Reserve’s policy decisions, with futures markets currently assigning roughly a one-in-three probability of a rate hike at this week’s FOMC meeting.
The report also highlighted that the U.S. 10-year real yield has climbed to 2.43%, nearing a level that has historically weighed on risk assets. Until stronger demand or a new catalyst emerges, Bitcoin is expected to remain trapped between $63,000 and $68,500.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
