Bitcoin Price Drop Attributed to Thin Trading Volume

The Bitcoin price dropped to around $62,600 by the end of the week after failing to reach $65,000. According to Yusuf Fakhro, a partner at ARP Digital, this was not due to panic selling but rather because the market simply stopped participating.

The exchange-traded fund (ETF) bid that had fueled Bitcoin's recovery in July stalled and turned into net outflows of nearly 4,000 BTC. The average daily spot volume logged its lowest since November 2023, while CME open interest returned to 2023 levels.

Even Strategy, a significant buyer, paused its purchases for the fifth consecutive week. This has led Fakhro to conclude that the market has 'stopped showing up.' A recent exploit of a Coldcard firmware flaw drained around $89 million from self-custodied wallets, causing some holders to move their coins back onto exchanges.