Bitcoin Struggles Above $64,000 as Weak Liquidity Weighs on Market

Bitcoin's price has hovered near $63,000 despite softer US inflation data from July. According to Prateek Gupta, Head of Business at Mudrex, weak market liquidity is weighing on the crypto market.

The daily spot Bitcoin volume has fallen to its lowest since 2019, at $1.19 billion, down from a peak of $14.7 billion in February. Institutional demand remains subdued, with Bitcoin ETFs recording over $200 million in outflows this week.

Riya Sehgal, Research Analyst at Delta Exchange, notes that softer US producer inflation has eased near-term rate concerns, but crypto's muted response suggests limited fresh spot demand.