After rising 1.56% over the previous day, Bitcoin (BTC) was trading at $63,921.09 at the time of writing, indicating that it is starting to recover.
However, according to a recent report by CoinShares, Bitcoin’s recovery has been fueled more by changes in the broader economy than it has in the cryptocurrency space.
The mind has turned, and the macro is the reason
In H1 2026, concerns about inflation, high interest rates, political tensions, and slowing economic growth caused investors to withdraw nearly $8 billion from cryptocurrency investments. the last eight weeksthe longest and largest outflow on record.
180-degree perspective in mind
However, that the movement begins to reverseand it looks like the entries will continue for two weeks in a row.
Interestingly, it was not any Bitcoin metric that caused the change in opinion but what was happening in the US inflation, which led investors to believe that the US Federal Reserve could reduce the monetary policy.
For the picture, less Bitcoin Gathering and entering about $250 million was it started on July 14 while the Consumer Price Index (CPI) reported -0.4%, below the expectation of -0.2%.
Expectations of easing monetary policy were further boosted the next day when the Producer Price Index (PPI) unexpectedly rose. fell -0.3% against forecasts of 0.0%.
Markets began to expect lower rates or lower rates due to less pressure from the Federal Reserve to keep interest rates high due to low inflation.
This led to hundreds of millions of dollars being invested in Bitcoin trading products due to the increased risk of consumption.
What’s next for Bitcoin?
In addition, the report highlights that Bitcoin may have reached the bottom in the short term, but without a major change in the policy of the Federal Reserve, a strong bull run is unlikely.
A slightly weaker economy could boost bitcoin as we see a return to interest rates.
In fact, instead of showing a sustained rally, Bitcoin is expected to trade in a narrow range until there are clear signs of a currency slowdown. Estimates were $120,000 and $60,000.
We expect different sales, a break above US $ 80,000 there will be no significant change in the financial expectations.
AMBCrypto’s latest news he also noted that Bitcoin is predicted to continue its decline and drop to $55,560 and $51,934 in the coming weeks.
Furthermore, the report shows that investor sentiment is still cautious. In fact, more and more people are becoming interested in blockchain-related stocks.
This was also confirmed by the Crypto Fear and Greed Index, which was in the “very fearful” zone.
Brief Summary
- Big financial factors are shaping bitcoin beyond crypto-specific metrics.
- Investors are still wary of Bitcoin and strongly favor blockchain-related stocks.
