Bitcoin's Price Stagnation Due to Thin Market Volume
Bitcoin's price has been stuck below $65,000 for the past week, but market analysts say it's not because of panic selling. Instead, they attribute the decline to a lack of volume in the market.
The largest cryptocurrency closed the week near $62,600 after failing to reclaim the $65,000 mark, according to Yusuf Fakhro, a partner at ARP Digital. He believes that the market's participation has stalled, with average daily spot volume reaching its lowest level since November 2023.
Fakhro also pointed out that the ETF bid, which powered Bitcoin's recovery in July, has stalled and turned into net outflows of nearly 4,000 BTC on the week. Additionally, CME open interest has returned to 2023 levels, and perpetual-futures positioning has stalled near 300,000 BTC.
The week's biggest news came from a coldcard firmware flaw that was exploited to drain around $89 million worth of Bitcoin from thousands of self-custodied wallets. This event led some holders to move their coins back onto exchanges and into regulated products.