Bitcoin was trading at $63,921.09 after a 1.56% gain on the previous day, showing signs of a gradual recovery. However, CoinShares reported that this rebound is mainly influenced by broader economic conditions rather than cryptocurrency-specific developments.
Macro Environment Influences Bitcoin Sentiment
During the first half of 2026, investor concerns around inflation, elevated interest rates, geopolitical conflicts, and slowing economic growth triggered an $8 billion withdrawal from crypto investment products over eight weeks, marking the largest outflow recorded. Recently, that trend reversed, with inflows expected to continue for two consecutive weeks.
The shift in sentiment was sparked by U.S. inflation data coming in below expectations, rather than any changes in Bitcoin metrics. On July 14, the Consumer Price Index (CPI) dropped by 0.4% compared to the forecasted 0.2% decline, triggering a $250 million inflow into Bitcoin products. The following day, the Producer Price Index (PPI) fell by 0.3% against a forecast of no change, further reinforcing market expectations of looser Federal Reserve monetary policy.
This led markets to anticipate fewer rate hikes or potential cuts, boosting risk appetite and resulting in hundreds of millions of dollars moving into Bitcoin investment vehicles.
CoinShares noted Bitcoin may have reached a short-term bottom. Yet, without a clear change in Federal Reserve policy, a strong bullish run is improbable. Bitcoin is expected to trade between $60,000 and $120,000, with a break above $80,000 unlikely absent a meaningful shift in monetary policy.
Supporting this view, AMBCrypto projects Bitcoin will continue declining toward $55,560 and $51,934 in the coming weeks. Sentiment remains cautious, reflected by the Crypto Fear and Greed Index residing in the "extreme fear" zone and increased investor interest shifting toward blockchain-related stocks.
Material is for informational purposes only and does not constitute financial advice.
