Bitcoin Trades Near $63,500 as Volatility Falls and Traders Anticipate Major Move

Bitcoin has been trading slightly higher near $63,500 on Monday following last week's modest correction. The world's largest cryptocurrency by market capitalization has been stuck in a tight trading range since mid-July, with subdued volatility that analysts believe will soon come to an end.

Institutional demand is showing some caution, with US spot Bitcoin exchange-traded funds (Spot BTC ETFs) recording net outflows of $389.71 million last week. If these outflows continue and accelerate this week, Bitcoin could face further corrective pressure.

Analysts at 10x Research reported that trading volumes have fallen sharply since the peak in October, while Bitcoin has entered its narrowest trading range in several months. This situation is typically short-lived, suggesting a strong move in either direction may be imminent.