Recent cooling in Bitcoin’s spot trading volume is signaling a potential local market top, as short-term holders capitalize on price gains accumulated since earlier this year.
Simultaneously, institutional demand remains evident through substantial net inflows into US Spot Bitcoin ETFs, totaling $4.63 billion since their launch. These sustained inflows underscore underlying confidence and purchasing pressure offsetting some selling.
The interplay of macroeconomic factors and Federal Reserve monetary policy continues to act as a primary driver for broader crypto market sentiment and Bitcoin’s price trajectory, heavily influencing investor risk appetite.
Despite institutional ETF demand, tempered upward momentum persists. Profit-taking activity by long-term Bitcoin holders applying selling pressure has constrained further significant appreciation.
Investors are advised to vigilantly monitor both ETF inflow trends and developments in Federal Reserve policy guidance, as these factors are anticipated to significantly shape the cryptocurrency market’s near-term direction.