CoinShares has identified three major pressures currently facing Bitcoin, according to its latest report. These include the Federal Reserve's hawkish stance, geopolitical uncertainties in Iran, and stalled progress on the Clarity Act. The June FOMC meeting minutes revealed that while the Fed maintained interest rates at 3.50%-3.75%, it removed dovish language, indicating potential rate hikes in September. Additionally, geopolitical tensions are heightened by the fragile ceasefire in Iran, impacting Bitcoin's status as a macro asset.
Bitcoin ETFs have seen record outflows of approximately $8 billion over eight consecutive weeks, though recent inflows over the past three days suggest the market may be nearing a capitulation phase. Strategy holdings account for about 4% of total supply, and while the initial sale of 32 BTC caused significant market reactions, the sale of 3,588 BTC in early July was absorbed smoothly, indicating reduced marginal impact. Meanwhile, the Clarity Act faces challenges, with its passage probability dropping from 74% to 48% over the past month. Despite these pressures, the market remains under strain but has not collapsed, indicating a fragile bottoming phase.
CoinShares Highlights Three Pressures on Bitcoin Amid Fragile Market
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