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Bitcoin has been range-bound since March.
Bitcoin has been range-bound since March, trading between its all-time high of $73,000 and a low of $58,000, and it is currently sitting near the lows. This price action comes amidst a non-supportive macro environment.
Key contributors include the Fed's recent dot plot, showing the median FOMC participant expects only one rate cut for the rest of 2024, with the long-term rate estimate rising from 2.75% to 3%. While this has had little impact on big tech, small, mid-cap stocks, and other interest-rate-sensitive assets like Bitcoin, have suffered. Additionally, a strong dollar has weakened Bitcoin's momentum.
Meanwhile, Mt. Gox is preparing to repay creditors in July, potentially releasing a significant amount of Bitcoin into the market. The German government has also started selling its $2.7 billion dollar Bitcoin holdings, weakening sentiment.
Unsurprisingly, we saw two straight weeks of more than $500 million of outflows from digital asset investment products.
