BTC’s Bull Run Hits a Wall: Capital Inflows Dry Up as Fed Minutes Fuel Policy Jitters
Bitcoin's rally slams into resistance as fresh money slows to a trickle.
Fed Uncertainty Rocks Markets
The Federal Reserve's latest meeting minutes dropped like a lead balloon—traders now face renewed doubts about interest rate direction. Policy waffling creates the perfect storm for crypto volatility.
Institutional Flow Falters
Big money moves? Barely a whisper. Whale activity flatlines as macro fears resurface. When traditional finance gets nervous, digital assets feel the pinch first.
Market Momentum Stalls
Buying pressure evaporates faster than a meme coin's utility. Without sustained capital injection, even bitcoin grinds lower. Classic case of 'wait-and-see' meets 'risk-off'.
So much for 'decoupling'—turns out crypto still dances when the Fed fiddles with the money printer.
- Despite BTC printing a new ATH at $124.4K last week, realized cap growth peaked at just +6% per month, materially softer than +13% during prior breakouts, which highlights fading demand intensity.
- BTC has pulled back -9.2% from $124.4K high last week to $113K; with the market unable to sustain momentum despite lighter profit-taking from holders.
- BTC futures OI remains at $67 billion, altcoin OI peaked at $60 billion before -$2.6 billion washout. ETH OI dominance is at its 4th-highest on record, with perpetual volume dominance hitting an ATH of 67%.
- Unlike prior ATHs, realized profit-taking volumes were muted, implying softer buy-side absorption rather than intense sell pressure.
- A neutral-to-hawkish tone from the Fed as the majority of members support holding rates, while some members are considering cuts in September. Labor market concerns are rising, but inflation risks still dominate Fed’s risk calculus.
