Bitcoin Stuck in Summer Lull Amid Improving Macro Backdrop
Bitcoin is stuck in a summer lull, with daily trading volumes running at around $4 billion. This subdued activity is not unique to Bitcoin, as equities and other risk assets are also experiencing thin markets.
The macroeconomic backdrop has become more supportive, however. Recent US labor market data were weak, with significant downward revisions, adding an average of only 20,000 jobs per month over the last three months.
Despite this, Bitcoin's initial reaction to the weaker employment numbers was muted, likely due to a lack of liquidity rather than a change in sentiment. However, prices have since begun to recover.
In contrast to gold, which has been trading inversely to Bitcoin over the past five days, it is behaving more like a risk asset at present.