(Bloomberg/Sidhartha Shukla) — Bitcoin declined for a fifth straight session as traders continue to pull back from the record highs reached in July during the euphoria around the US embrace of digital assets.
The original cryptocurrency touched the lowest level in three weeks, dropping as much as 2% to $114,128. On July 14, Bitcoin reached a record of $123,200 just days before Donald Trump signed the first US regulatory guidelines for crypto into law.
Ether fell as much as 3.13% to $3,617, with the broader crypto market retreating after topping $4 trillion in total market capitalization in July for the first time.
That record run was fueled by unprecedented ETF inflows. The group of US Ether ETFs logged $5.4 billion in net inflows last month, their best on record, while Bitcoin ETFs attracted $6 billion — the third-best month ever, according to data compiled by Bloomberg. But momentum has waned in recent days, with ETF inflows tapering and key institutional metrics signaling cooling demand.
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“The price action reflects a fading sense of euphoria and a partial retreat of speculative capital,” said Linh Tran, market analyst at XS.com. “Bitcoin has struggled to break higher largely due to rising caution from institutional investors.”
Bitcoin’s Coinbase premium, a proxy for US investor interest, flipped negative this week after nearly two months of positive readings, according to CryptoQuant. Open interest in Bitcoin and Ether futures on CME has also dropped 13% and 21%, respectively, from July highs.
Shares of Coinbase Global Inc. fell on Friday after the largest US crypto exchange reported lower-than-estimated second-quarter revenue amid a drop in digital-asset market volatility.
Options markets paint a similarly cautious picture. “Bitcoin 30-day skew has flipped from +3% to -1.5%, meaning puts are now priced higher than calls,” said Nick Forster, founder of crypto options platform Derive.xyz. “This indicates strong demand for downside insurance, as traders expect one to two months of bearish price action.”
“Late July saw a wave of realized profits in the $6–8 billion range, suggesting that institutions, satisfied with recent returns, are de-risking ahead of a choppy Q3,” Forster added. “Roughly $10 billion worth of BTC was sold over-the-counter on July 15, triggering a brief 4% price drop. Miners also offloaded about 15,000 BTC after new all-time highs.”
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