Bitcoin (BTC) failed to capitalize on its latest rally as sellers overwhelmed buyers at upper levels. As a result, the flagship cryptocurrency lost momentum after reaching an intraday high of $110,590 on Thursday, and is down nearly 1%, trading around $108,930.
Analysts believe the absence of new buyers and FOMO-driven greed are factors that could keep BTC below $110,000-$112,000 for the time being.
Bitcoin Mining Stocks Post Double-Digit Gains
Crypto mining stocks registered robust weekly gains despite a brief pullback on Thursday. Stocks rallied thanks to signs of a favorable macroeconomic backdrop that could support the Federal Reserve’s soft landing narrative. Shares of mining firms, including Riot Platforms (RIOT), Hive Digital (HIVE), Hut 8 (HUT8), MARA Holdings (MARA), and Bitfarms (BITF) rallied between 13% and 28% over four trading sessions. US markets closed early on Thursday ahead of the Independence Day weekend. Markets, including public mining companies, responded to a better-than-expected US non-farm payrolls report on Thursday before registering marginal declines.
VanEck’s Digital Transformation ETF, which tracks 24 listed digital asset firms, including Coinbase (COIN) and Strategy (MSTR), rose over 3% on Thursday. Bitcoin mining stocks mirrored a broader market rally that saw the S&P 500 and the Nasdaq Composite rise to new all-time highs. While the workforce participation has reported a decline, economists have attributed the decline to a crackdown on immigration that may have impacted labor supply.
Spot Bitcoin ETF Inflows Cross $600 Million
Spot Bitcoin ETFs reported over $600 million in inflows on Thursday, registering their strongest showing in over a month as investors put capital into crypto. The influx helped the ETFs to cross the previous mark of $588 million, reached on June 24. BlackRock’s IBIT and Fidelity’s FBTC recorded for the majority of Thursday’s inflows, registering $224.5 million and $237.1 million. Other ETFs reported smaller inflows, with Ark Invest’s ARKB registering $114,2 million.
Meanwhile, Grayscale’s GBTC and Franklin Templeton’s EZBC registered zero net flows.
Institutional investors have returned to risk assets like Bitcoin (BTC) due to the anticipation of looser financial conditions under President Trump’s expanded administration policies. Spot Bitcoin ETFs are the primary avenue of exposure to BTC, offering investors regulated assets without the complexities of direct crypto asset ownership. Peter Chung, head of research at Presto Labs, stated,
“I think what's driving the ETF flow is the expectation of looser liquidation conditions. It seems risk-on trade is increasingly gaining traction, and for institutions, ETFs are the easiest way to access the Bitcoin exposure.”
Can Trump’s Big Beautiful Bill Power Bitcoin (BTC) Price Action?
Analysts believe Bitcoin (BTC) could gain 40% after President Trump signs the “Big Beautiful Bill” on Independence Day. Crypto investors are eying swift gains as the massive spending bill becomes a reality. The flagship cryptocurrency has historically reacted positively to indications that the US will increase borrowing. The new bill is no exception, with estimates that the US national debt will surge to $40 trillion. The Kobessi Letter, stated in a recent analysis,
“To put this into perspective, at the start of 2020, total US debt stood at $23.2 trillion. This would mark a near $17 TRILLION increase in 6 years. Never in history has the US borrowed even remotely near the levels we are borrowing now. This is a crisis.”
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) has retreated during the ongoing session after failing to close above $110,000. The flagship cryptocurrency registered a sharp drop at the beginning of the week, falling to a low of $105,328 on Tuesday. However, it recovered on Wednesday, rising nearly 3% to cross $108,000 and settle at $108,845. BTC crossed $109,000 on Thursday, settling at $109,650 after reaching an intraday high of $110,590 before losing momentum during the ongoing session.
Crypto entrepreneur Arthur Hayes believes BTC could move to a new all-time high, but is still likely to test $90,000 this year. Hayes stated in a blog post that the bill, which increases the debt ceiling and cuts taxes, could force the US Treasury to borrow more. President Trump is expected to sign the bill into law on Friday. Hayes argued that the Treasury would refill its General Account, draining liquidity from the markets and impacting the price of assets like BTC. However, he believes BTC will ultimately continue pushing upwards.
“Proceed with caution. The bull market might be interrupted for a short period of time.”
Hayes previously stated that the central bank’s monetary policy, particularly money printing, could benefit BTC and other cryptocurrencies. BTC’s decline dashes market expectations of a new all-time high, with low spot demand indicating limited upside. BTC’s ability to push to a new all-time high has been limited by a lack of buyers. Market data resource Swissblock Technologies stated in a post on X,
“BTC is breaking out, but where’s the spot demand? Without real demand, breakouts run on fumes. We need buyers to sustain the price breakout.”
However, K33 Research highlighted that spot volumes tend to be lower from June to October compared with the rest of the year.
BTC ended the previous weekend in the red, dropping to a low of $98,385 before reclaiming $100,000 and settling at $100,985. The price recovered on Monday, rising over 4% to reclaim $105,000 and settling at $105,443. Sellers retained control on Tuesday as BTC rose 0.66% to $106,137. The price crossed $107,000 on Wednesday, rising 1.19% and settling at $107,397. Despite the positive sentiment, BTC registered a marginal decline on Thursday, slipping below $107,000 and settling at $106,980. The price recovered over the weekend, registering marginal increases on Friday and Saturday to reclaim $107,000 and settle at $107,339. Bullish sentiment intensified on Sunday as BTC rose nearly 1% to cross $108,000 and settle at $108,350.
Source: TradingView
BTC was back in the red on Monday, dropping 1.09% and settling at $107,167. Bearish sentiment intensified on Tuesday as the price fell 1.33%, slipping below $106,000 and settling at $105,742. Despite the selling pressure, BTC recovered on Wednesday, rising nearly 3% to reclaim $108,000 and settle at $108,845.Buyers retained control on Thursday as the price rose 0.74%, reaching an intraday high of $110,590 before settling at $109,650. The current session sees BTC down nearly 1%, trading around $108,642.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
