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July 1 BTC Price Hits $107K—Momentum Shows Signs of Slowing
July 1 Bitcoin Price Update – Bitcoin’s nearly three-month rally is showing signs of slowing down. Analysts at Bitfinex noted in their market report that, “For the first time in this long-standing uptrend, momentum has started to weaken,” highlighting that buying pressure is fading and investors are beginning to take profits.
41% Surge Followed by Consolidation Signals
Bitcoin dropped to its year-to-date low of $73,273 on April 9, then surged almost 41% to $107,380. However, analysts warn that the phase of “vertical acceleration” seems to be over for now, and the market may be entering a period of consolidation or a local top. Short-term holders, especially those who bought below $80,000, are increasingly realizing profits by selling their Bitcoin.
Institutional Demand and ETF Inflows to Shape the Future
Bitcoin’s next move largely depends on macroeconomic factors and continued institutional demand, particularly from Bitcoin ETFs. US-based spot Bitcoin ETFs have seen inflows for 14 consecutive trading days since June 9, totaling around $4.63 billion net inflows by June 27. Economist Timothy Peterson described last week’s $2.2 billion inflow as “massive” and expects the trend to continue.
Fed Decisions and Long-Term Holder Influence
Traders are closely watching the Federal Reserve’s interest rate decision on July 30. The market currently estimates a 19% chance of a rate cut, generally considered bullish for Bitcoin. Meanwhile, Charles Edwards, founder of Capriole Investments, explains Bitcoin’s struggle to break past $100K mainly comes from long-term holders (OGs) selling their positions despite institutional buying.
Market Overview: Transition Phase Underway
Bitfinex analysts believe the market is in a transition phase, with higher timeframe support levels holding firm. Economist Donald Dean adds that “Bitcoin is poised to move higher after tight consolidation,” signaling a potential new upward wave on the horizon.
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.
