Bitcoin Trapped in Range-Bound Downtrend Amid Weak Institutional Demand

Bitcoin's price has been trading range-bound at around $63,000-$64,000 after briefly falling below $62,000 earlier in the week. The decline coincided with a broader selloff in technology and semiconductor stocks, continued withdrawals from U.S. spot Bitcoin exchange-traded funds (ETFs), and growing uncertainty following the Federal Reserve's latest policy decision.

Institutional flows remain one of the biggest headwinds for Bitcoin, with Citigroup cutting its 12-month price forecast to $82,000 from $112,000, citing persistent ETF withdrawals, weaker investor demand, and slower-than-expected progress on U.S. cryptocurrency legislation.

Recent ETF data has shown mixed signals, with some funds briefly returning to positive inflows before another round of selling emerged as Bitcoin slipped below $65,000. Trading volumes have hit their lowest levels since 2023, reflecting reduced participation from both retail and institutional investors.