Bitcoin Traders Eye Macro Factors Amid Summer Illiquidity

Bitcoin traders are looking at macro factors to gauge their outlook for the cryptocurrency in the short-term. According to data from Coinbase on TradingView, Bitcoin fell to around $63,700 on August 2nd, a decline of approximately 2.4% from its previous day's price of $65,341.83.

Several analysts weighed in on what they think will influence the cryptocurrency's next move. Jeff Anderson, managing director at STS Digital, noted that Bitcoin has been trading within a narrow range between $62k and $66k for five weeks, with conviction thin on both sides due to summer illiquidity.

Anderson highlighted several key variables that he believes will impact the market, including the outcome of the upcoming policy meeting from the Fed and the fate of the proposed Clarity Act. He also noted that volatility has naturally compressed while traders wait for these catalysts.

Benedict Sarquis Peillard, founder & CEO of credit marketplace Cap, emphasized the importance of watching Wednesday's CPI print and whether Bitcoin can close above $66,000. He stated that soft inflation data has historically eased rate-hike fears and supported risk assets.

Paul Howard, senior director at crypto trading firm Wincent, offered a different perspective, stating that Bitcoin's recent price action has largely been driven by steady ETF inflows being offset by OTC selling from miners and Strategy. He expects consolidation to persist over the next three to four weeks until there is further clarity on the CLARITY Act.

Todd Ault, founder of Ault Blockchain, expressed a positive outlook for Bitcoin, stating that he believes it will go higher but with plenty of volatility along the way. He emphasized that inflation, oil and liquidity are all still important factors in his assessment.