Despite a broader crypto market recovery, Bitcoin's price has continued to struggle. Several factors are contributing to this stagnation, including significant outflows from U.S. Spot Bitcoin ETFs and mixed outlook from Fed officials. Here are the key reasons why Bitcoin is struggling:

Bitcoin ETF Outflows

The recent outflow from U.S. Spot Bitcoin ETFs has weighed heavily on market sentiment. Over the past four days, more than $700 million has been withdrawn from these funds, with significant outflows on June 18. This trend has raised concerns among investors and impacted their risk appetite.

Other Concerns

The mixed outlook from Fed officials on policy rate plans has also contributed to the uncertainty. Although inflation data shows a cooling trend, the market remains cautious. Investors are shifting their focus to lower-priced altcoins, seeking clarity before entering the market. For Bitcoin to avoid a potential drop to $61,000, it needs to climb above $66,254, according to popular crypto market analyst Ali Martinez.

Why the Crypto Market Is Up Today

The crypto market has shown upward momentum despite a dip in Bitcoin's price. The surge in altcoins, led by Ethereum, reflects growing investor confidence. Ethereum's price jumped after the U.S. SEC concluded its investigation on Ethereum's security status, amid optimism over a potential approval of the U.S. Spot Ethereum ETF by July 2.

Macroeconomic Factors

Recent data showing a cooling of global inflation has bolstered market sentiment. The European Central Bank's rate cut and the U.S. CPI and PPI data indicating a cooling of inflation have raised bets over potential rate cuts by the Federal Reserve. Additionally, the U.K. CPI inflation cooling to 2% in May has led to expectations of a potential rate cut by the Bank of England.

Bottom Line

Although Bitcoin has struggled amid the broader crypto sector recovery, market pundits remain optimistic about its long-term trajectory. If Bitcoin's performance mirrors historical trends, it could reach its top either in December 2024 or October 2025. As of writing, Bitcoin's price has stabilized at $65,300, while Ethereum's price has soared nearly 4% to $3,560.