FX.co ★ Bitcoin Continues to Consolidate

In mid-August, Bitcoin was trading at around $63,500, holding within a narrow range it has maintained since early July and sitting roughly 50% below the all-time high reached last October. Ongoing uncertainty around the Federal Reserve’s future interest-rate moves and a lack of progress on the US Clarity Act continued to keep many potential buyers on the sidelines.

Institutional demand also appeared fragile. US-listed spot Bitcoin ETFs saw net outflows of $389.7 million in the week of August 10, erasing nearly half of the $853.5 million in inflows recorded the previous week and marking their largest weekly outflow since late June. The pullback followed a brief strengthening in ETF demand in early August, driven in part by the Coldcard wallet hack, which temporarily boosted interest in gaining Bitcoin exposure through traditional investment vehicles.