Bitcoin Rebound Stalls as Investors Remain Cautious Amid Consolidation

Bitcoin's recent rebound has stalled as investors remain cautious despite the cryptocurrency's recovery to around $62,840. According to Ryan Lee, Chief Analyst at Bitget Research, the crypto market has entered a consolidation phase after recovering from last week's lows.

The Crypto Fear & Greed Index still reflects fear, highlighting cautious investor sentiment. Bitcoin rose earlier in the week after softer US inflation data improved demand for riskier assets, pushing prices to an intraday high of $65,364 and Ethereum to $1,938.

However, profit-taking and fresh geopolitical concerns pushed prices lower again, with Ethereum being hit harder as leveraged long positions were closed.

Institutional investors continue to add exposure through spot Bitcoin and Ethereum ETFs, despite short-term traders remaining cautious. Lee noted that institutional demand remains constructive, suggesting long-term allocations are still in place even as short-term traders reduce exposure.