Bitcoin Falls Below $63K Amid Tightening Liquidity and ETF Shifts

Bitcoin's price on August 3, 2026, reflects a cautious market grappling with tightening global liquidity conditions. The US Treasury yields have climbed, driven by stronger-than-expected economic data, which in turn has strengthened the US dollar.

This dynamic increases the opportunity cost of holding non-yielding assets like Bitcoin, prompting some investors to reduce exposure. BTC fell 1.1% on the day to trade at approximately $62,750.

Institutional Demand Shows Signs of Fatigue Spot Bitcoin ETFs in the US, which had recorded $132 million in inflows over four consecutive trading sessions earlier in August, appear to be shifting towards a defensive stance. On August 3, net outflows were observed in leading US-domiciled funds.