After rising 1.56% from 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 CoinShares report, Bitcoin’s recovery has been driven more by shifts in the overall economy than unique developments in the cryptocurrency space.
Feelings have changed, and the kidney is the reason
In the first half of 2026, concerns about inflation, rising interest rates, geopolitical tensions, and slowing economic growth led investors to withdraw about $8 billion from cryptocurrency investment products over the course of the first half of 2026. The past eight weeksthe longest and largest outflow ever.
180 degrees feelings in feelings
However, so The trend has begun to reverseIt appears that inflows will likely continue for two consecutive weeks.
Interestingly, it was not any Bitcoin-specific metric that caused the sentiment shift, but rather a reaction to lower-than-expected US inflation data, leading investors to believe that the US Federal Reserve may ease monetary policy.
For context, modest Bitcoin The pool and flows were about $250 million Launched on July 14 When the Consumer Price Index (CPI) recorded -0.4%, lower than the expected -0.2%.
Expectations of monetary policy easing were further strengthened the next day when the Producer Price Index (PPI) suddenly rose Decreased by -0.3% versus expectations of 0.0%..
Markets are beginning to expect lower interest rate hikes or even rate cuts as a result of less pressure from the Fed to keep interest rates high due to lower inflation.
This has led to hundreds of millions of dollars being invested in Bitcoin investment products as a result of increased appetite for risk.
What lies ahead for Bitcoin?
Additionally, the report highlighted the fact that Bitcoin may have bottomed in the short term, but without a major change in Federal Reserve policy, a strong uptrend is unlikely.
A slightly weaker economy could provide an additional boost to Bitcoin as we see a reassessment of interest rate expectations.
In fact, rather than showing a sustained rally, Bitcoin is expected to trade within a relatively narrow range until there are unambiguous signs of monetary easing. The expected range was $120,000 and $60,000.
We expect range trading, and a break above $80,000 is unlikely absent a tangible shift in monetary policy expectations.
AMBCrypto’s latest article He also noted that Bitcoin is expected to continue its downward trajectory and fall to $55,560 and $51,934 in the coming weeks.
In addition, the report shows that investor sentiment remains cautious. In fact, an increasing number of people are becoming interested in blockchain-related stocks.
This was also confirmed by the Fear and Greed Cryptocurrency Index, which was in the “extreme fear” zone.
Final summary
- Macroeconomic factors shape Bitcoin more than just cryptocurrency-specific metrics.
- Investors remain cautious about Bitcoin and are more keen on blockchain-related stocks.
