In Brief:
- Bitcoin rebounds towards $66,000 after softer US inflation data.
- Spot Bitcoin ETFs record a second week of net inflows.
- $65,000-$66,000 remains the key resistance level.
Bitcoin regained ground this week after a weak start to July, with improving investor sentiment helping the cryptocurrency recover towards the $66,000 mark following softer-than-expected US inflation data.
The world’s largest cryptocurrency had slipped into the high $50,000s earlier this month as investors reacted to macroeconomic uncertainty and geopolitical tensions, although Tuesday’s inflation figures changed the tone by easing concerns that the US Federal Reserve could tighten monetary policy further in the near term, prompting one of Bitcoin’s strongest daily advances in several weeks.
Institutional demand also showed signs of improvement as US spot Bitcoin exchange-traded funds returned to net inflows after an extended period of withdrawals. Recent figures showed investors added $197.4 million during the previous week, followed by a further $75.7 million in the latest reporting period, suggesting selling pressure has eased and appetite for Bitcoin exposure is beginning to recover.
Despite the stronger performance, Bitcoin still faces an important technical hurdle. The $65,000 to $66,000 range has repeatedly capped rallies since June and remains the principal resistance level traders are watching before confidence in a broader advance can strengthen.
External risks also continue to influence sentiment. Earlier concerns surrounding rising tensions between the United States and Iran, together with higher oil prices, contributed to inflation worries across financial markets, and while those concerns have moderated they remain part of the wider backdrop as investors await the Federal Reserve’s next policy decision and further US economic data.
For now, Bitcoin’s recovery remains encouraging rather than decisive. Improving ETF demand and softer inflation have restored momentum after a difficult start to the month, although a sustained move higher is likely to depend on breaking above the long-standing resistance zone while maintaining the recent return of institutional inflows.