In Brief:
- Fed decision sparks brief Bitcoin rebound before momentum fades
- ETF flows remain uneven as institutional demand slows
- Strategy’s potential Bitcoin sales weigh on market sentiment
Bitcoin (BTC) spent the final week of July caught between optimism and caution. The market began the week trading around the $65,000 mark, but repeated attempts to push higher lost momentum as investors waited for the Federal Reserve’s latest interest rate decision before reassessing the outlook.
On Wednesday, the Federal Reserve left interest rates unchanged at 3.50% to 3.75%, giving Bitcoin an initial boost. The rally, however, proved short-lived as traders shifted their focus back to weakening institutional demand and month-end positioning.
US spot Bitcoin ETFs recorded strong net inflows on July 30, but that followed several sessions of outflows, including more than $465 million leaving the funds late the previous week. The mixed flows suggest institutional investors remain cautious despite Bitcoin’s resilience around key technical levels.
Selling pressure intensified on Friday after Strategy, the world’s largest corporate holder of Bitcoin, reported weaker-than-expected quarterly earnings and revealed it could sell up to $5 billion worth of Bitcoin as part of its capital management strategy.
The company reported quarterly revenue of $122.4 million, narrowly missing analyst expectations of $122.9 million. During the earnings call, CEO Phong Le said the potential sale would strengthen Strategy’s cash position and provide greater financial flexibility, including funding possible share buybacks.
Founder Michael Saylor added that while the company had outlined a $5 billion figure, the eventual amount sold could be lower or higher depending on market conditions.
Bitcoin fell 3.1% over the following 24 hours to around $62,700, after touching an intraday low near $62,500, its weakest level since early July. Strategy shares also dropped 7.3% on Friday, extending their decline for the year.
Regulatory discussions remained in the background, with the CLARITY Act still drawing attention around the future of digital asset rules. However, this week’s price action was driven mainly by monetary policy, ETF flows and Strategy’s announcement rather than legislative changes.
Bitcoin ultimately finished July in a stronger position than where it began the month, but it remains trapped within a broad trading range.
On the daily chart, resistance continues to sit around $67,000, where a potential double top has formed, while the $58,000 region has repeatedly attracted buyers. A decisive break above resistance or below support is likely to determine Bitcoin’s next major move.