Bitcoin Price- Bitcoin Struggles Amid Rising Core Inflation
Bitcoin Price– Bitcoin (BTC) kicked off the week with significant price swings, leading to a dual-sided liquidation event in the derivatives market. Data from Glassnode reveals that within just 24 hours, $28.6 million in long positions and $25.2 million in short positions were liquidated. This rare simultaneous flush led to a steep 7% decline in BTC-denominated open interest, falling from 360,000 to 334,000 BTC.
Analysts suggest this reflects a market reset, as excessive speculative leverage clears out. BTC’s on-chain metrics also indicate cooling momentum, with user activity remaining muted and profit-taking slowing. According to Glassnode, “the market appears to be digesting recent gains, likely waiting for renewed demand.”
Technical and Macro Pressures Weigh on Bitcoin
Currently trading within the $100,000–$110,000 range, Bitcoin (BTC)’s price action remains confined within a descending channel. A critical support zone lies between $103,400 and $104,600, aligning with a daily fair value gap and the 200-day EMA. This could present a rebound opportunity, though technical strength remains limited until bullish momentum returns.
Adding to the uncertainty, U.S. inflation data continues to challenge the outlook for rate cuts. Core PCE inflation rose to 2.7%, slightly above expectations, indicating sticky inflation. The Federal Reserve is now less likely to ease monetary policy soon, putting pressure on risk assets like Bitcoin.
As on-chain transfer volume declined 36% earlier this quarter, and only a modest $7.7 billion increase in spot volume was noted in Q2, market participants remain cautious awaiting stronger catalysts.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
