Bitcoin (BTC) was trading at $63,921.09 at the time of writing, after rising 1.56% from the previous day, indicating that it was starting to recover.
However, according to a recent CoinShares report, Bitcoin’s recovery has been driven by shifts in the overall economy rather than developments specific to the cryptocurrency space.
Emotions have changed and the reason is macro
Concerns about inflation, higher interest rates, geopolitical tensions and slowing economic growth in the first half of 2026 have caused investors to withdraw approximately $8 billion from cryptocurrency investment products. last eight weeksthe longest and biggest debut on record.
180 degrees of emotion
But this the trend started to reverseand it looks like the entries will continue for another two weeks in a row.
Interestingly, it was not any Bitcoin-specific metrics that caused sentiment to change, but rather a reaction to lower-than-expected US inflation data. This led investors to believe that the US Federal Reserve might ease monetary policy.
Modest in context Bitcoin There was an increase and inflow of approximately 250 million dollars. Triggered on July 14 Consumer Price Index (CPI) reported -0.4%, below the expected -0.2%.
The next day, the Producer Price Index (PPI) suddenly rose, further strengthening expectations that monetary policy would be eased. Down -0.3% against 0.0% forecast.
Markets began to expect fewer interest rate increases or even interest rate cuts as a result of the reduced pressure on the Fed to maintain high interest rates due to low inflation.
This led to hundreds of millions of dollars being invested in Bitcoin investment products as a result of increased risk appetite.
What awaits Bitcoin?
Additionally, the report sheds light on the fact that Bitcoin has likely reached its short-term bottom, but a strong bull run is unlikely without a significant change in Federal Reserve policy.
A slightly weaker economy could provide further support to Bitcoin as we see a rerating in interest rate expectations.
In fact, rather than exhibiting a sustained rise, Bitcoin is expected to trade in a relatively narrow range until there are clear indicators of monetary easing. The projected range was $120,000 and $60,000.
We expect ranged trading with a break above US$80,000 unless there is a meaningful change in monetary policy expectations.
AMBCrypto’s latest article He also stated that Bitcoin is predicted to continue its downward trend and drop to $55,560 and $51,934 in the coming weeks.
Additionally, the report shows that investor sentiment remains cautious. In fact, an increasing number of people are becoming interested in blockchain-related stocks.
This was also confirmed by the Crypto Fear and Greed Index, which is in the “extreme fear” zone.
Final Summary
- Macroeconomic factors shape bitcoin more than just crypto-specific metrics.
- Investors are still wary of Bitcoin and more keen on blockchain-connected stocks.
