Bitcoin Price Stuck in Tight Range Amid Forced Selling and Rising US Liquidity

Bitcoin's price has been stuck in a tight range between $63,700 and $65,500, despite U.S. spot bitcoin exchange-traded funds (ETFs) posting significant outflows of $465 million over two days last week.

The losses occurred on July 23 and 24, ending a seven-day streak of inflows that had brought in nearly $1 billion. However, the outflows did not flip the trend negative overall, with net inflows for the week totaling $33.79 million.

Ethra Invest's Saeed Al-Marri attributed the pullbacks to forced selling rather than a broad retreat from the asset, stating that 'longs are being liquidated six times as often as shorts (6 to 1), which tells you this is bullish bets getting wiped out, not a broad exit from the asset.'

The macroeconomic picture remains complex, with U.S. net liquidity climbing to $5.92 trillion, a level historically associated with looser financial conditions.