US-listed spot Bitcoin exchange-traded funds (ETFs) are seeing a sharp reversal in fortunes this month, attracting nearly $2 billion in fresh inflows after a bruising August marked by heavy redemptions.

Data from SoSoValue shows that 12 Bitcoin ETF products logged inflows in six of the first eight trading sessions of September. Over the past four sessions alone, they have drawn roughly $1.7 billion, signaling a clear resurgence in investor appetite.

The consistency of these inflows contrasts sharply with August, when the same funds suffered $751 million in outflows.

The trend has also widened the gap with Ethereum, the second-largest crypto by market capitalization.

While Bitcoin products have attracted significant fresh capital this month, Ethereum investment vehicles have recorded over $550 million in outflows over the same period.

Nick Forster, founder of the on-chain options platform Derive, told CryptoSlate that this divergence highlights shifting sentiment from Ethereum back to Bitcoin.

According to him:

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“ETH inflows have slowed considerably, while BTC saw a meaningful spike in institutional buying yesterday. The smart money appears to be rotating back into BTC, possibly taking a breather from ETH beta after its recent run.”

Bitcoin ETFs now drive price action

The latest flows reinforce ETFs’ growing role in shaping Bitcoin’s price trajectory.

André Dragosch, head of research at Bitwise Europe, noted on X that daily net ETF flows have become the strongest determinant of Bitcoin’s market direction since US regulators approved the first spot products earlier this year.

According to him:

“Since early 2024 and the US ETF approvals, daily net flows have shown a significantly stronger correlation with subsequent returns, underscoring the extent to which institutionalized demand via ETPs now shapes price discovery.”

Notably, this is evident in the top crypto’s recent price performance. This month’s recent spate of inflows coincided with Bitcoin’s price consolidating near $114,000 and reversing the several weeks of weak performance.

Considering this, Dragosch stressed that:

“Bitcoin ETPs have become far more than an investor convenience. They are now a crucial determinant of market liquidity, performance, and the evolution of Bitcoin’s broader ecosystem.”

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Bitcoin (BTC) is steadily reversing the more than 3.8% gains of the last seven days as the effect of U.S. inflation hit the flagship cryptocurrency. As highlighted by Ted Pillows, a vocal market analyst, Bitcoin, which previously surged past $114,000 and looked like it was heading for the next level, has lost momentum.

Bitcoin trading weakens after leak

Notably, the pullback is the result of broader economic developments that are weighing in on the financial market.

The U.S. Consumer Price Index (CPI), which measures inflation, has shown upward movement, increasing from 2.7% to 2.9%. This signals that inflation remains high and is affecting investment patterns.

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The rising inflation is causing investors concern as it suggests that the Federal Reserve might decide to keep interest rates high. If the Federal Reserve raises interest rates, risk assets like Bitcoin will not be attractive. The price reversal in Bitcoin is a reaction to these concerns on the broader financial market.

Meanwhile, according to Pillows, despite the inflation worries, Nasdaq futures are up 0.35%, while S&P futures are at 0.27%.

This indicates that Wall Street has not hit the panic button yet and remains slightly more positive than crypto assets.

As of press time, Bitcoin is changing hands at $114,439.98, which represents a 0.5% increase in the last 24 hours. The coin had previously hit a peak of $114,686.09 in an upward rally before being hit by volatility. The trading volume remains low as well and is currently down by 12.35% at $47.94 billion.

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Could U.S. Tariffs fund Bitcoin bull run?

Bitcoin has high chances of a rebound if Fred Krueger’s predictions happen. The former Wall Street quant opines that the U.S. could start buying BTC, using tariff money. The U.S has the potential to generate $50 billion monthly, and investing that in Bitcoin could see the purchase of up to 400,000 BTC.

This could trigger a bullish rally for the flagship coin as the demand will flip the supply, pushing the price upward.

Julien Bittel, head of macro research at Global Macro Investor, argued that the bull run remains in its early stages based on comprehensive economic indicators.

In a Sept. 8 analysis shared via X, Bittel counters widespread “peak cycle” sentiment in crypto markets, challenging late-cycle narratives by examining traditional economic markers.

Peak sentiment

Classic late-cycle economies typically feature extreme manufacturing sentiment with ISM readings around 60, elevated services sentiment, high homebuilder confidence, strong consumer and worker confidence, bullish investor sentiment, and accelerating wage growth.

Bittel said current data paints a different picture. When scoring inputs from ISM, NAHB, NFIB, BLS, AAII, and The Conference Board into a composite sentiment measure, US economic sentiment remains “very subdued” and far from euphoric late-cycle extremes.

He stated:

“This does not look like an above-trend late-cycle economy. It looks much more like an early-cycle economy trying to build momentum.”

Central bank policy provides additional support for this thesis. Nearly 90% of central banks globally are cutting rates, creating what Bittel describes as “extraordinary” conditions and “a massive tailwind for the business cycle” on a forward-looking basis.

Oil prices reinforce the early-cycle argument, trading nearly 20% below trend and continuing to fall. This represents easing financial conditions rather than the tightening typically associated with late-cycle dynamics.

Historically, oil prices running 50% above trend have signaled recession since the early 1970s.

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Bull cycle in early stages

Temporary Help Services data shows “early-cycle vibes” with rising growth from profoundly negative levels, indicating economic recovery rather than rollover.

According to Bittel, late-cycle periods typically feature positive year-on-year growth that’s slowing, reflecting an overheated economy losing steam.

He attributes rising unemployment to the lagging nature of jobs data, calling it “a six-month look in the rear-view mirror.”

Businesses first increase overtime hours and temporary workers before committing to expensive full-time hires with benefits and pensions.

Bittel also frames current conditions as “early-cycle” transitioning to “mid-cycle,” describing the progression as “Macro Spring” (growth up, inflation down), moving toward “Macro Summer” (growth up, inflation up).

He concluded that this macro perspective challenges the prevailing crypto market sentiment, which suggests that the bull cycle has peaked. Instead, he assessed that the current economic conditions support continued expansion rather than contraction.

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Cardano’s mood music has flipped. Even as ADA has rebounded about five percent from its late-August lows, on-chain analytics firm Santiment says the asset’s typically optimistic retail crowd has swung to its most negative stance in five months.

In an X post accompanying its sentiment chart, the firm wrote: “Cardano has quietly seen its normally optimistic crowd start to turn bearish. After the lowest sentiment recorded in 5 months, $ADA’s price is +5%. Patient holders and dip buyers during this three week downswing should root for this trend of bearish retailers to continue.”

Santiment framed that shift in classic contrarian terms. “Prices typically move the opposite direction of the crowd’s expectations. When small traders sell off their bags out of impatience and frustration, it is generally the key stakeholders who accumulate and drive up prices again,” the post added.

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The graphic shared by the firm plots ADA’s price against a running ratio of bullish versus bearish social commentary and annotated three distinct phases over the past month: an early-August “greed” spike where the bullish-to-bearish ratio surged to roughly 12.8:1 and was followed by a pullback; a mid-August “fear” pocket near 2.0:1 that preceded a rally; and, most recently, the most bearish reading in five months around 1.5:1, coinciding with ADA’s +5% bounce.

The sequencing in Santiment’s chart supports the firm’s message that outsized crowd optimism or pessimism frequently appears near short-term inflection points. The short-term price path into that rebound has been marked by a three-week downswing that began around August 14.

Cardano Faces Decision Zone

Independent market analyst Quantum Ascend ties the bounce to a clearly defined higher-time-frame structure. Posting a daily ADA/USD chart, the analyst wrote: “ADA Respecting a channel on the high time frame dating back to early June. Higher Highs, Lower Lows. Short-term decline dating back to August 14 channeling as well. Price Currently sitting atop the .382 Fib at $0.82. Cardano’s decision point appears near, but we still need to be looking to the Macro. Regardless, I’m very bullish long-term.”

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In Quantum Ascend’s view, ADA is tracking an ascending channel that has contained price action since mid-June. The short, blue corrective channel from August 14 sits inside that broader up-channel and has carried price back to the lower end of the channel as well as a Fibonacci retracement cluster derived from the June–August advance.

The analyst’s chart places the 0.382 retracement near $0.821, which has acted as first support and the immediate “decision point.” Below that, the same mapping highlights the 0.309 retracement around $0.762 and the 0.236 near $0.702 as deeper pullback areas inside the macro structure.

Overhead, the analyst’s levels mark successive checkpoints at the 0.5 retracement near $0.879, the 0.618 near $1.043, the 0.702 around $1.083, the 0.786 near $1.151, and the 1.0 extension around $1.326—levels that also align with prior supply pockets and the upper boundary of the ascending channel later in the quarter.

At press time, ADA traded at $0.8177.

Featured image created with DALL.E, chart from TradingView.com

Bitcoin has broken down from the two-week consolidation range that held the market between $115,724 and $122,077, reaching a new local low near $114,000. The drop confirms a shift in short-term momentum, putting bulls on the defensive. The $117,000 level—previously a key support zone—now serves as the immediate resistance that must be reclaimed to signal a possible reversal.

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The breakdown comes at a critical time, as sentiment across the market begins to shift. According to fresh data from CryptoQuant, futures sentiment turned bearish today, falling sharply before bouncing back slightly to 48%. While still close to neutral, any reading below 50% signals bearish dominance in positioning. This adds pressure to an already fragile technical structure and suggests traders are bracing for more downside.

Unless bulls can recover $117K quickly and close with strength, Bitcoin risks entering a deeper correction phase. With long-term support levels still intact, the broader bull trend remains in place—but this breakdown marks the first significant loss of momentum in weeks. The coming sessions will be critical in determining whether this is just a shakeout or the start of a larger trend reversal.

Bitcoin Advanced Sentiment Index Signals Rising Bearish Pressure

Top analyst Axel Adler has shared new insights into the Bitcoin Advanced Sentiment Index, a key metric used to gauge futures market positioning and broader investor mood. According to Adler, the index recently dropped to 40%—a sharp decline that reflected growing risk aversion and bearish positioning. Although the metric has since rebounded to 48%, it remains below the critical 50% threshold, which separates bullish from bearish territory.

This rebound signals a temporary pause in negative sentiment, but the broader trend shows a shift from bullish caution to bearish fear. Adler notes that as long as the index remains below 50%, the market lacks the confidence needed to sustain upward momentum. Traders are growing increasingly defensive, reducing long exposure and bracing for further downside.

If momentum continues to deteriorate, BTC could test the $112,000 level—the previous all-time high set in May. This zone may act as psychological and technical support, but failure to hold it could trigger a deeper correction.

With the Advanced Sentiment Index stuck in bearish territory and price action weakening, the market appears to be entering a riskier phase. While this doesn’t yet signal a full trend reversal, it does reflect growing uncertainty. Until sentiment and price reclaim higher ground, caution is warranted. The next move will likely depend on whether bulls can defend $112K—or if bears gain full control of the trend.

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BTC Loses Key Support After Breakdown

Bitcoin has officially broken down from its two-week consolidation range, losing the critical $115,724 support level highlighted in the chart. The price reached a new local low at $114,116 before recovering slightly to the $115,100 zone, where it’s currently attempting to find footing. This marks a significant shift in momentum, as bulls failed to defend the lower boundary of the range, which held firm throughout July.

The 12-hour chart shows rising volume accompanying this breakdown, adding weight to the bearish move. BTC now trades below the 50-day SMA ($116,981), confirming weakness in short-term structure. The next major support sits around $112,000—the prior all-time high set in May—which could act as a psychological and technical floor.

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The 100-day and 200-day SMAs remain well below current price action, suggesting that the macro trend is still intact. However, immediate momentum has clearly shifted, and bulls must reclaim the $117,000 area quickly to invalidate this breakdown.

Featured image from Dall-E, chart from TradingView

The Bitcoin price action was largely sideways rather than strongly bullish for most of June. As of early July, the flagship cryptocurrency has maintained its movements around $108,000 – $110,000 region. While Bitcoin still retains its bullish market structure, recent on-chain data calls for a level of caution when investors are looking for opportunities in the market. 

Bitcoin Sentiment Recovers From Bearish 

In a July 4 post on the social media platform X, crypto analytics firm Alphractal revealed that the Bitcoin investor sentiment is “very bullish.” This on-chain observation is based on the Alpha Crypto Sentiment Gauge metric. 

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As its name suggests, the indicator evaluates the emotions of investors in the market, ranging from extreme fear to euphoria. These emotions are represented as color-coded interpretations, usually in red, yellow, light green, and dark green, and these further represent investor sentiment ranging from bearish to very bullish.

In the chart shared by Alphractal above, the appearance of a dark green colour signals that the market sentiment is “very bullish” at the moment.

Prior to their July 4 post, Alphractal reported in a June 23 post that the market sentiment was flashing bearish signals. In the post on X, the analytics firm warned that the bears could be in trouble. Interestingly, the bears were indeed in trouble, as Bitcoin picked up more buying momentum, consequently liquidating several bearish positions.

However, Alphractal explained that sighting green does not necessarily mean the market may be at a top. Instead, it signals that euphoria is taking over the market, which, according to the analytics firm, unlocks a wave of opportunities for Bitcoin buyers.

Alphractal said:

On the other hand, red zones are usually short-lived, but offer exceptional buy opportunities — like no other indicator can.

As the market displayed, the bearish signal interpreted from the Sentiment Gauge eventually provided more buying opportunities. Growing market euphoria is not the only meaning that can be derived from a green signal in the market. It could also serve as a warning for potential overconfidence in the market as Bitcoin continues to gain value. 

If history is anything to go by, the market could experience rapid price expansions and an increase in investor risk-on approach. On the other hand, the “very bullish” sentiment could also precede sharp corrections, especially if fueled by crowd emotion, rather than market fundamentals. Whether this green sentiment signals the next price leg up, or the establishment of a market top is yet to be known — as a result, traders are advised to remain alert. 

Bitcoin Price At A Glance 

After its early show of strength on Thursday, Bitcoin has lost nearly 2% of its value in the past 24 hours. As of this writing, the premier cryptocurrency is valued at about $107,754. 

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Featured image from iStock, chart from TradingView

Crypto Writer

Arslan Butt

Crypto Writer

Arslan Butt

About Author

Arslan Butt is an experienced webinar speaker, market analyst, and content writer specializing in crypto, forex, and commodities. He provides expert insights, trading strategies, and in-depth analysis…

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Last updated: 

July 5, 2025

Bitcoin slipped to $108,035 following the unexpected movement of over 80,000 BTC, which had been inactive since 2011. The coins, acquired initially when BTC traded below $1, were transferred on July 4 in two significant transactions, raising fears of a potential dump amid near-record prices.

This was the largest shift of dormant Bitcoin in over a decade.

While no direct transfer to centralised exchanges was detected, a typical sell signal was issued; however, the scale of the move caused a ripple across the market. Traders feared that such a massive stash entering circulation could spark a correction.

In response, long positions were unwound, shorts piled in around the $110,000 resistance level, and price slipped nearly 2% within hours.

• BTC price drop: $110,000 → $107,600
• 24h trading volume: Over $41.3 billion
• Dormant BTC moved: 80,000 BTC (~$8.6 billion)
• Price as of writing: $108,035

Despite the initial shock, the fact that the BTC was not sent to exchanges suggests internal wallet reorganisation rather than a coordinated sell-off.

However, the event highlighted the sensitivity of sentiment, particularly when Bitcoin hovers near key psychological and technical resistance zones.

Long-Term Outlook Buoyed by Liquidity Forecasts

While short-term sentiment faltered, longer-term bulls found encouragement in macro commentary from Sui Group Chief Economist Hong Hao. Speaking to Phoenix Finance, Hong projected that Bitcoin could hit fresh all-time highs by late 2025, driven by strong global liquidity and dovish monetary policies.

Hong emphasised that Bitcoin remains highly responsive to changes in liquidity, and with central banks likely to loosen financial conditions into 2025, risk assets like BTC stand to benefit. He also pointed to improving sentiment in U.S. equities, suggesting broader risk-on appetite could return.

For now, analysts say this dual narrative—short-term caution vs. long-term optimism—will likely keep BTC consolidating as markets digest the implications of dormant coin activity.

Bitcoin Technical Analysis: Bounce or Breakdown?

Technically, Bitcoin is clinging to support at $108,035 after failing to break above $110,413. Price action on the 2-hour chart shows consolidation above a key ascending trendline and just below the 50-period EMA ($108,250). A bearish divergence in the MACD histogram hints at weakening upside momentum.

Unless BTC breaks below $107,325, the structure remains intact. A bounce from the current zone could reignite trade momentum.

Trade Setup :

• Entry Zone: $107,800–$108,100 (watch for bullish engulfing)
• Upside Targets: $109,307 and $110,413
• Stop-Loss: Below $107,200 to reduce risk
• MACD Signal: Bearish crossover; wait for confirmation

For a Bitcoin price prediction, the next 48 hours will be crucial, as a break below the trendline support would invalidate the uptrend. However, if the $108K level holds, this remains a classic “buy-the-dip” scenario in a structurally bullish setup.

Bitcoin Hyper Presale Surges Past $1.92M as Price Rise Nears

Bitcoin Hyper ($HYPER), the first Bitcoin-native Layer 2 powered by the Solana Virtual Machine (SVM), has surpassed $1.90 million in its public presale, with $1,927,122 raised out of a $2,373,526 target. The token is priced at $0.012125, with the next price tier expected within hours.

Designed to merge Bitcoin’s security with Solana’s speed, Bitcoin Hyper enables fast, low-cost smart contracts, dApps, and meme coin creation, all with seamless BTC bridging. The project is audited by Consult and engineered for scalability, trust, and simplicity.

The golden cross of meme appeal and real utility has made Bitcoin Hyper a Layer 2 contender to watch in 2025. With staking, a streamlined presale, and a full rollout expected by Q1, $HYPER is gaining serious traction.

Crypto markets bounced back in early Asian trading hours on June 24, sparked by US President Donald Trump’s announcement that a ceasefire had been reached between Israel and Iran.

On June 24, Trump posted on Truth Social:

“CONGRATULATIONS TO EVERYONE! It has been fully agreed by and between Israel and Iran that there will be a Complete and Total CEASEFIRE.”

This unexpected development helped reverse losses in the crypto market and triggered a swift surge in the value of major digital assets.

According to CryptoSlate’s data, Bitcoin led the rebound, rising 3% to reclaim levels above $105,000, a few days after briefly dipping below the $100,000 threshold.

Other top 10 digital assets by market capitalization posted even stronger gains, with Ethereum (ETH), Cardano (ADA), and Dogecoin (DOGE) climbing 6% to $2,417, $0.58, and $0.16, respectively.

Notably, Solana (SOL) and XRP outperformed the broader market, climbing over 7% each. Solana touched over $144, while XRP traded at $2.18 as of press time.

Meanwhile, the sudden price spike caught many short sellers off guard, and over $370 million worth of short positions were liquidated across the crypto market.

Traders betting against Ethereum suffered the most, with liquidations topping $119 million. Losses from short positions in major altcoins like Solana, XRP, and Cardano added more than $40 million to the tally.

Market analysts say the rapid response highlights how closely digital assets react to geopolitical events.

Valentin Fournier, a lead analyst at BRN, told CryptoSlate that Trump’s ceasefire claim shifted investor sentiment almost instantly, even though neither country involved had issued formal confirmation.

Fournier cautioned that while markets are rallying on the ceasefire news, similar truces have historically been short-lived. Still, he noted that the sharp rebound shows fear may have reached its peak and that many altcoins could be poised for further gains if tensions remain contained.

He noted:

“Our overweight on Solana paid off, as it outperformed both BTC and ETH, confirming its role as a high beta leader in recovery phases.”

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