Bitcoin continues to show resilience as it remains trading around the $64,000 level despite the market still facing pressure from the US Federal Reserve's (Fed) tight monetary policy and outflows from Bitcoin spot ETF products.
At the time of writing, Bitcoin price is at $64,176, up 0.36% since it opened early Tuesday in Asian trading.
This situation reflects that selling pressure is easing, but new demand that can push higher has yet to emerge.
Over the past month, Bitcoin has experienced a decline of about 13 percent and is now moving in a narrow price range.
Analysts see the current situation more as a consolidation phase than the start of a new uptrend.
According to market observers, a stronger recovery requires investor sentiment towards risky assets to recover and is supported by a more market-friendly long-term interest rate environment.
Outflows from Bitcoin spot ETFs continue to be a factor that institutional investors are watching.
Over the past month, the total withdrawal of funds has reached almost $4 billion, reflecting caution among large investors.
However, the slowing rate of outflows suggests that selling pressure may be easing.
At the same time, activity in the derivatives market suggests that a process of de-leveraging is underway, helping to stabilize Bitcoin price movements.
Interestingly, large holders or ‘whales’ are still seen choosing to use Bitcoin as collateral to obtain liquidity rather than selling their holdings, thus showing confidence in the long-term potential of the digital asset.
Market attention is now focused on the expiration of $10.9 billion worth of Bitcoin options contracts on June 27, which is expected to increase price volatility in the short term.
With the Fed’s policy still tight and the absence of a new major catalyst, Bitcoin is seen to be going through a phase of finding its way before determining its next move.
