INSUBCONTINENT EXCLUSIVE:
inflation data (2.7%) and sticky price growth reduce the likelihood of Fed rate cuts, maintaining pressure on Bitcoin and risk
assets.Bitcoin (BTC) experienced notable price volatility at the start of the week, with sharp weekend and Monday swings leading to a
significant shakeout in the derivatives market
According to Glassnode, $28.6 million in long positions and $25.2 million in shorts were liquidated within 24 hours, reflecting a rare
dual-sided flush that caught leveraged traders off guard and underlined the rapid shift in market sentiment.Bitcoin futures long and short
Source: GlassnodeBTC-denominated open interest dropped by ~7%, falling to 334,000 from 360,000 BTC
This sharp decline points to a temporary clearing of speculative leverage, suggesting that the market is in a reset phase
Profitability metrics are fading, and user participation remains subdued, inferring a consolidation phase
Glassnode noted that the market appears to be digesting recent gains, likely waiting for a renewed surge in demand to fuel the next leg
The current price action remains confined within a descending channel, with a key area of interest between $103,400 and $104,600
This zone aligns with a daily fair value gap (FVG) and is supported by the 200-day exponential moving average (EMA), raising the potential
for a bounce.Bitcoin 4-hour chart
Source: Cointelegraph/TradingViewConsidering BTC collects internal liquidity within this range, a bullish breakout above the descending
channel to new highs remains a plausible scenario
However, until momentum builds and onchain activity revives, the broader market structure could likely stay in consolidation mode.Related:
Bitcoin long-term holders stack 800K BTC per month in record hodl runA lack of bullish follow-through could mean that bearish momentum may
persist into the coming week
Despite recent positive chatter around a potential interest rate cut, the latest inflation data suggests the Federal Reserve has little
reason to shift its stance
PCE climbed to 2.7%, slightly above the projected 2.6%
This marks the first uptick since February 2025, indicating renewed inflationary pressure.With price growth showing signs of stickiness, the
Fed is likely to maintain its rate pause, keeping financial conditions tight, which is unfavorable for risk assets like Bitcoin.Glassnode
data further supports the cautious outlook, showing a minor $7.7 billion increase in spot volume during Q2
Transfer volume dropped 36% earlier in the quarter, highlighting a lack of speculative urgency.Bitcoin Total Transfer Volume
Source: GlassnodeRelated: Bakkt Holdings files $1B shelf offering that could fuel Bitcoin buysThis article does not contain investment
advice or recommendations
Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
