Traders may have to wait longer for a Bitcoin rally, with analysts saying the market still lacks a clear catalyst to bring buyers back.
Despite institutional demand, ETF flows, and tight supply keeping things constructive, Bitcoin remains range-bound, according to Monday’s note by QCP Capital, a crypto trading firm.
The analysts described the broader setup for crypto as “constructive but lacks a clear catalyst,” suggesting those longer-term trends alone may not be enough to trigger the next rally.
“For crypto, the broader backdrop remains constructive but lacks a clear catalyst. Institutional adoption, steady ETF demand and constrained supply continue to provide support, yet BTC▲$62,630.00 has remained largely rangebound as investors wait for greater clarity on inflation and the Fed’s policy outlook.”
Instead, investors appear to be waiting for a clearer signal from the U.S. economy or the Federal Reserve before taking larger positions.
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Bitcoin Traders Wait for Inflation Data
The first possible trigger comes Tuesday with the release of the latest U.S. Consumer Price Index, which tracks inflation paid by consumers, the analysts say.
According to QCP Capital, a soft inflation report could further fuel expectations for lower interest rates, which could help Bitcoin. But a surprisingly high reading would once again raise worries about sustained high rates.
The U.S. Bureau of Labor Statistics is scheduled to publish June’s inflation report on July 14.
In addition, the market will also pay attention to the two-day testimony of Federal Reserve Chairman Kevin Warsh before the Congress when he will be questioned on issues such as inflation, interest rates and the independence of the central bank.
QCP Capital said the inflation report and Warsh’s comments are likely to shape the market’s mood as investors look for a clearer idea of where monetary policy is heading.
Therefore, since investors don’t yet have enough catalysts from economic reports or companies’ financial results for taking risks, Bitcoin seems trapped between positive trends and the unwillingness of the market to advance further.
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