Bitcoin Range-Bound as Sellers Run Low and Buyers Remain Absent

Bitcoin has been stuck in a range-bound market for some time now, and analysts agree that the sellers are running low, but buyers have yet to return. The leading cryptocurrency changed hands around $64,700 on Monday, up by 0.8% on the day, but down about 13% over the past month and almost 50% below its record high of $126,080 set in October.

According to James Butterfill, head of research at CoinShares, Bitcoin proved 'more resilient than anticipated' in the face of new Fed Chair Kevin Warsh's hawkish debut. Despite a lower-than-expected 1.6% drop versus the S&P 500's 1.2% and the Nasdaq's 1.3%, Butterfill noted that 'higher real-rate expectations are still a headwind for liquidity-sensitive assets.'

Analysts such as Tim Sun, senior researcher at HashKey, believe that Bitcoin is reverting to a macro liquidity asset trading framework, with ETF flows, oil prices, and long-end Treasury yields being the key variables to watch. Meanwhile, Dean Chen, an analyst at Bitunix, flagged a liquidation map tilted to the downside, but noted that the failure to fall into that zone points to 'a stabilizing force absorbing volatility.'

Stephen Wundke, strategy and revenue director at Algoz Technologies, pointed to a potential catalyst in the form of a U.S. Clarity Act vote targeted for July 4, warning that a miss could push the market-structure bill into the fourth quarter.