Bitcoin hovered near $62,600 at the end of last week, failing to regain the $65,000 level after a subdued trading period that saw market participation dwindle significantly. Industry observers highlighted that the cryptocurrency’s stability above $60,000 was less about underlying strength and more a result of reduced trading activity.
ETF flows and trading volumes slow sharply
Yusuf Fakhro, partner at ARP Digital in Bahrain, pointed to the dip in demand from exchange-traded funds as a major factor in Bitcoin’s recent price behavior. Funds that had fueled gains in July shifted course, recording net outflows of nearly 4,000 BTC during the week following consistent inflows earlier in the month.
Supporting this cautious market tone, the overall spot trading volume in July fell to its lowest daily average since November 2023. Meanwhile, open interest in Chicago Mercantile Exchange (CME) Bitcoin contracts dropped to levels last seen in 2023, and activity in perpetual-futures markets flatlined at close to 300,000 BTC.
ARP Digital’s analysis suggests that this period of inactivity signals traders have largely stepped back, reducing the momentum that had previously carried the market higher. Even major institutional buyers such as Strategy paused their Bitcoin acquisitions for a fifth consecutive week, further contributing to the market’s stagnation.
Fed decision removes recent catalyst
The Federal Reserve’s meeting on July 29 ended without an interest rate change and no indication of upcoming policy easing. This lack of new direction removed a recent bullish driver for cryptocurrency markets.
Elsewhere, the slowdown in ETF demand and spot activity was echoed in flows moving into and out of exchanges. “This is a market that has stopped participating, and with ETF inflows on hold, price action is holding more on exhaustion than on real buying strength,” ARP Digital’s Fakhro observed.
Security incident influences custody trends
Last week was further rattled by news of a Coldcard firmware exploit that had been dormant since 2021. Attackers used the flaw to steal approximately 1,367 BTC—about $89 million—from thousands of self-custodied wallets. In response, affected holders transferred coins back to exchanges or into regulated products to mitigate further risk.
The confluence of slow ETF flows, muted derivatives activity, and heightened caution after the security breach marked a week where Bitcoin’s resilience above $60,000 was shaped more by the absence of aggressive sellers than by renewed demand.
Market observers advised monitoring flows into ETFs closely; if inflows remain subdued yet Bitcoin’s price continues to hold, this could affirm the view that market exhaustion, rather than sustained demand, is currently supporting the price.
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