Matrixport’s weekly report highlights a deceleration in Bitcoin’s upward trajectory amid emerging vulnerabilities in the U.S. macroeconomic landscape. Two pivotal economic indicators have declined to multi-month lows, signaling potential headwinds. Despite this, investor focus remains predominantly on ETF fund flows, with funding trends, stablecoin movements, and predictive data pointing toward a significant market transition.
As U.S. economic data softens, the market faces heightened uncertainty. The recent surge in demand appears linked to accelerated order execution ahead of anticipated tariff policies, which are now stabilizing. Policymakers remain cautious, wary that tariff-induced inflationary pressures could delay any premature easing of monetary policies.
Previously, we identified a Bitcoin breakout above $84,500 as confirmation of bullish momentum. However, given the potential summer volatility, a prudent approach to profit-taking was recommended. Although prices have softened, the trend model retains a bullish outlook, only turning bearish if Bitcoin dips below $96,719. With momentum waning and early signs of economic fragility, a period of turbulence may ensue, limiting Bitcoin’s ability to sustain uninterrupted gains amid persistent inflation and a cautious Federal Reserve.