The global cryptocurrency market continues to be in a market correction phase even though Bitcoin (BTC) price managed to make several brief technical rebounds of $5,000 from the lows below $58,000 on July 1. Market reports on Thursday revealed that BTC’s price structure remains under pressure that paralyzes any attempt to break through the resistance line, triggered by a combination of five negative domestic and macroeconomic factors for the remainder of the second quarter of 2026.
The first and second factors are rooted in the Middle East geopolitical landscape and US monetary policy. The collapse of the ceasefire plan following a series of 90 attacks by CENTCOM on Iran and Trump’s statement at the NATO Summit declaring the peace MoU was over, have dragged Brent crude oil prices up again. This “energy-driven inflation” has forced Fed Chairman Kevin Warsh to keep the dollar borrowing cost high at 3.75%, sucking liquidity out of high-risk alternative assets.
In the institutional institutional corridor, the third most painful factor for the market stems from the drastic action of Michael Saylor’s MicroStrategy (MSTR). The firm, a hardcore Bitcoin buyer who has consistently accumulated Bitcoin for the past five years, has been spotted launching two treasury sales operations in the past two months. The latest announcement earlier this week revealed that Saylor has liquidated more than 3,500 BTC units, triggering a crazy crisis of confidence among Wall Street equity holders about the stability of the company’s treasury model.
This negative sentiment has been exacerbated by a fourth factor, namely the failure of capital inflows into Bitcoin spot ETFs (such as BlackRock’s IBIT) which have recorded a record cumulative net loss of over $8 billion in just two months. In fact, some weekly volumes have set records with capital outflows exceeding $1.5 billion in five trading days. Although the institutional fund has managed to register a green trend in three of the last four trading days, the overall confirmed volume is still not enough to restore Bitcoin’s rally expectations.
The final weight that has weighed on Bitcoin’s bearishness is the severe fall of the Coinbase Bitcoin Premium Index, which has recorded a 50-day consecutive negative zone. This derivative indicator proves that capital demand from retail and institutional investors in the United States is at a standstill.
