Bitcoin’s retreat from a two-week peak follows a decline in open interest and weak ETF flows, raising doubts about the rally’s sustainability.
Bitcoin fell from $64,500, its highest level in over two weeks, as declining open interest and subdued ETF inflows cast doubt on the rally’s strength. Over $500 million in leveraged short positions were liquidated in 24 hours, reinforcing the view that July’s gains stem from a short-squeeze rather than fresh bullish demand.
The cryptocurrency had climbed every day since July 1, recovering from oversold conditions, but stalled on Tuesday, breaking its longest winning streak since March. Ether followed Bitcoin’s decline, dropping to $1,770 after peaking at $1,830. The total crypto market cap rose 8.4% this month to $2.16 trillion.
Altcoins showed mixed performance, with ETHFI and LIT surging over 30% in the past week, while FET, KASPA, and WLD posted losses. U.S. equities also weakened, with Nasdaq 100 futures down 0.9% in pre-market trading.