Bitcoin has been trading flat around the $29,000 mark as traders await the latest U.S. inflation reading. On-chain metrics suggest a sentiment for accumulation in anticipation of a price break-out. Liquidity for the digital asset is at a multi-year low, with illiquid supply reaching new all-time highs. A price break-out for bitcoin could be influenced by macro-economic conditions, including a pause in Federal Reserve rate hikes. Analysts expect the U.S. inflation report to show headline inflation rising to the mid-3% range, but the more important core rate slowing to 4.7%. Bitcoin investment products have seen significant outflows this week, with institutional investors taking profits. Overall volume is down for digital asset trade on centralized exchanges and institutional investment products.
– Bitcoin has been trading flat around $29,000 as traders await the U.S. inflation reading.
– On-chain metrics suggest accumulation in anticipation of a price break-out.
– Liquidity for bitcoin is at a multi-year low, with illiquid supply reaching new highs.
– A price break-out for bitcoin could be influenced by macro-economic conditions, including a pause in Federal Reserve rate hikes.
– Bitcoin investment products have seen significant outflows this week as institutional investors take profits.
Hot Take: Bitcoin’s recent flat trading indicates caution among traders, but on-chain metrics suggest accumulation. The upcoming U.S. inflation reading and Federal Reserve rate hikes will be important factors in determining a price break-out. Institutional investors have been taking profits, resulting in outflows from bitcoin investment products. Overall, the crypto market is experiencing lower volume, indicating a summer lull in trading activity.
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