Bitcoin Breaks Out of $63,000 Range but Broader Recovery Uncertain

Bitcoin's price broke above $63,000 on Monday and quickly rose past $64,000, escaping the narrow range that had held it captive for days.

The catalyst for this move was the US macro picture, as traders reduced their expectations for a Federal Reserve rate hike in September and the dollar weakened, making risk assets like Bitcoin more attractive.

Additionally, selling pressure eased, with Bitcoin inflows to exchanges dropping sharply, funding rates cooling, and open interest decreasing. This suggests fewer coins are sitting on exchanges ready to sell, while leveraged traders are less aggressively positioned.

However, the broader picture remains less convincing, as CryptoQuant's volatility-adjusted momentum has fallen below zero, indicating weak returns relative to recent volatility. The US spot demand also remains soft, with the Coinbase Premium Index still negative.