Bitcoin Ignores Good News as Demand Remains Elusive

The Bitcoin market is facing a peculiar situation as it ignores positive inflation data and record-high equities. According to Glassnode analyst Frederik Theissen, July's core CPI came in at 2.5%, which should be a benign backdrop for markets. However, the BTC price barely budged, indicating that demand is absent.

The spot trading volume has hit its lowest level since 2019, with sellers tiring and buyers staying away. The market is stuck between $63,000 and $68,700, with the Median Realized Price at $63,000 absorbing every test from above for over a month. The Short-Term Holder Cost Basis at $68,700 sits overhead, representing the average entry price of recent buyers who are currently underwater.

Seller exhaustion is at a cycle low, among the weakest readings since 2013, and SOPR has tested breakeven nine times since October without success. On the buyer side, ETF inflows turned slightly positive in July but remain a fraction of prior accumulation waves. Exchange inflows are rising as sell-side supply builds, but institutional demand is lacking to absorb the pressure.