Bitcoin Buyers Remain Absent Amid Positive Economic Data

Bitcoin investors received what should have been positive news last week, but the asset failed to capitalize on it. A weak US jobs report and then supportive CPI and PPI data were supposed to send BTC upward, but instead, it's down on a weekly scale, currently struggling to remain above $63,000.

The jobs report from a week ago briefly pushed BTC beyond $65,000, but the subsequent CPI data led to a brief rebound to $64,400 before Bitcoin gave back gains and resumed its downtrend. The PPI report was even more encouraging, with producer prices remaining flat month-over-month, contrary to expectations of a 0.2% increase.

CryptoQuant weighed in on the matter, suggesting that the explanation may have less to do with the macro environment and considerably more to do with a simple problem: Bitcoin buyers are nowhere to be seen in the spot market. They pointed out that trading activity remains subdued, while flows into US BTC ETFs have remained relatively weak in the past several days.

The Coinbase Premium Index has been almost entirely in negative territory for three months and now sits at around -0.1%. The seven-day average spot trading volume across major exchanges dropped from nearly $9 billion in late June to under $4 billion on August 12, a 55% decline that came even as BTC's price recovered 8% within the same timeframe.