Bitcoin closed a fourth consecutive weekly advance, its first such run since April, but the gain was only 1% and followed a 5% drop from a weekly high of $67,000. Bitfinex Alpha data points to thinning institutional demand, with CME Bitcoin futures below $6 billion and the Coinbase Premium Index negative for more than 60 trading days.
Bitcoin's winning streak now rests on a 1% weekly gain — a fourth straight weekly advance, the first such run since April, though 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. That decline reinforced overhead resistance and showed buyers still struggling to push Bitcoin beyond its recent trading range.
CME futures fall below $6 billion
According to the latest Bitfinex Alpha report, the short-term holder cost basis has stabilized near $68,500, having 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, and 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. 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.
Trading volumes run at 62.4% of the yearly average
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.
Fed holds rates for a fifth meeting
The Federal Open Market Committee kept the federal funds rate unchanged at 3.50%-3.75% for a fifth straight meeting on Wednesday. Bitcoin seesawed that day and was last 0.3% higher at $63,968.5, as the eased rate-hike jitters ran into a slump in risk sentiment and surging oil prices.
Three regional Fed presidents — Cleveland's Beth Hammack, Minneapolis' Neel Kashkari and Dallas' Lorie Logan — voted to raise the federal funds rate by 25 basis points.
Sources: CryptoPotato, Investing.com
Trading involves risk.
Risk Disclaimer
