Recent data shows a significant drop in bullish activity among Bitcoin traders, as seen in the negative Bitcoin funding rate. This indicates a decrease in interest in Bitcoin futures contracts, a shift from the trend observed since October 2023.

Several factors contribute to this decline in Bitcoin demand. These include less money flowing into US spot-Bitcoin ETFs and the limited impact of the recent halving event on Bitcoin's value. Additionally, tensions in the Middle East and possible delays in Federal Reserve rate cuts have dampened enthusiasm for the cryptocurrency.

What It Means for Bitcoin's Future

The decrease in Bitcoin funding rates, now below zero after peaking in March, suggests traders are less eager to make long bets. Analysts believe this trend may lead to more stable prices for Bitcoin in the near future.

Furthermore, the drop in daily inflows into US spot-Bitcoin ETFs compared to March shows a waning interest in cryptocurrencies among US institutions. This is reflected in the decrease in open interest at CME Group’s Bitcoin futures market, indicating less interest from institutional investors in the US.

Despite the challenges, many investors remain optimistic about Bitcoin's future, especially after the recent halving event. Some expect Bitcoin to surpass $70,000, though uncertainty remains. Resistance at $67,000 suggests Bitcoin may need to overcome more obstacles before reaching new highs. Wednesday's price drop to $64,295 could prompt some traders to buy, but there's concern it could fall further to $60,000.

In conclusion, the decrease in bullish bets and institutional interest in Bitcoin suggests a period of consolidation and uncertainty for the cryptocurrency, despite optimistic expectations for its future.