Bitcoin continued its weakness after entering June. According to CoinGecko data cited in the article, BTC has fallen by more than 4% in the past week, with the price falling back to around $73,000, failing to continue the rebound momentum after returning to $82,000.
Macroeconomic pressures once again dominate trading.
The report suggests that this pullback is related to rising US inflation data. Stronger inflation has weakened market expectations for a Federal Reserve rate cut and increased the likelihood of high interest rates remaining in place for longer. In an environment where interest rates remain high, risk assets are typically more vulnerable to pressure.
The article also mentions that geopolitical tensions are weighing on market sentiment. A renewed escalation in US-Iran relations could push up oil prices and further increase inflationary pressures. For the cryptocurrency market, these macroeconomic and geopolitical factors often influence risk appetite in tandem.
ETF outflows exacerbate volatility
Besides macroeconomic factors, the flow of funds into spot ETFs is also considered a drag. The report mentions that BlackRock sold over $1.5 billion worth of Bitcoin last month. While the market absorbed most of the selling, this action may still dampen sentiment among some retail investors.
From a market performance perspective, Bitcoin has recently been exhibiting more of a low-level consolidation pattern. The article predicts that, given the overall weak sentiment, BTC is likely to continue fluctuating around its current range in the short term.
Regulatory progress may influence subsequent sentiment.
The report also mentioned that the US Congress may move forward with the CLARITY Act in the coming weeks. This bill aims to provide a clearer regulatory framework for the crypto industry. If the bill progresses, it could improve investor sentiment and attract more funds back to crypto assets.
However, at this stage, market trading is still mainly focused on inflation, interest rate paths, geopolitical risks, and ETF fund flows. Whether Bitcoin can stop its decline depends on whether these external factors ease.
