Bitcoin is entering a stabilization phase, trading at around $66,300 with a slight decline, yet maintaining a notable 7% gain over the past two weeks. Analysts attribute this stabilization to several contributing factors, including significant stablecoin inflows totaling $38 billion this year that have augmented market liquidity. This trend has occurred despite a $1.7 billion reduction in Circle's USDC. Analysts from 10x Research suggest the market is absorbing the impacts of elevated bond yields, possibly delaying Bitcoin's upward movement. Meanwhile, institutional activity remains a critical factor, with recent ETF inflows indicating ongoing accumulation in the market. Although Bitcoin faced resistance at $70,000, the subsequent pullback is seen as an opportunity for accumulation before a potential bullish breakout, especially with factors like the U.S. presidential elections and possible interest rate cuts on the horizon. However, caution is advised as Bitcoin tests a local support level, with implications for possible deeper corrections if breached.

Source 🔗