BITCOIN HOVERS AROUND $62,600 AS ETF DEMAND WEAKENS AND FED UNCERTAINTY LINGERS

The world's largest cryptocurrency traded around $62,607 on Monday, August 3, keeping BTC close to the $62,000–$63,000 range after a difficult end to July. Bitcoin's recent weekly trading range stretched from about $62,475 to $65,100, while it closed the previous week near $63,570.

The retreat has left Bitcoin well below the highs that defined its 2025 rally and has shifted attention from how quickly BTC could reach new records to whether buyers can defend the lower levels now in focus.

The decline has not been driven by one event. Instead, Bitcoin has been caught between softer institutional demand, reduced momentum, leveraged positions being unwound and a broader reassessment of interest-rate expectations following the Federal Reserve's latest policy meeting.

US spot Bitcoin exchange-traded funds have provided a particularly important signal. After attracting substantial capital earlier in July, the funds recorded net outflows of $225.1 million on July 23 and another $240.1 million on July 24. The outflow slowed to $11.6 million on July 27, according to Farside Investors.

That does not mean institutional investors have abandoned Bitcoin. The US spot Bitcoin ETFs still have cumulative net inflows of more than $51 billion. But the recent flow data shows that the aggressive buying pressure seen during stronger periods has weakened.

The corporate-buying picture has also become quieter. Strategy, one of the world's largest corporate holders of Bitcoin, went three consecutive weeks without adding to its Bitcoin holdings, leaving its reported holdings at 843,775 BTC.

For a market that has increasingly relied on institutional and corporate demand, pauses like this matter. They do not determine Bitcoin's price on their own, but they can leave the market with less support when selling pressure increases.

The Federal Reserve is another piece of the puzzle, although the decision traders were waiting for has already arrived.

On July 29, the Federal Reserve kept its benchmark interest-rate target at 3.50 per cent to 3.75 per cent. The decision was accompanied by an unusual level of disagreement among policymakers, with three officials voting against the decision  two favouring a rate cut and one favouring a rate increase.

That split has kept the market focused on what comes next.

Bitcoin is particularly sensitive to shifts in expectations around liquidity and interest rates because it is generally treated as a higher-risk asset. When investors expect tighter financial conditions, appetite for volatile assets can weaken. When expectations turn more accommodative, Bitcoin can benefit from renewed risk appetite.

For now, neither side has fully taken control.

The price action is also being amplified by leverage. As Bitcoin moved lower, leveraged long positions were forced to close, adding selling pressure to the market. Recent reports put crypto liquidations at more than $500 million during one of the sharpest stages of the decline.

But this is not necessarily a sign of a full-scale Bitcoin capitulation.

The market has experienced much larger liquidation events and deeper declines in previous cycles. What is clearer at the moment is that traders have become more cautious, with Bitcoin struggling to reclaim the levels above $64,000 that had provided support late last week.

That makes the $62,000 area increasingly important.

A sustained move below that region could put the next round of support under pressure, while a recovery above $64,000 and then $65,000 would begin to improve the short-term picture.

For now, Bitcoin is in a market that is searching for a catalyst.

The Federal Reserve has delivered its decision. ETF demand is no longer providing the same level of momentum. Corporate accumulation has slowed, while traders are watching leverage and liquidity closely.

The result is a market that feels less like a panic and more like a standoff.

Buyers are waiting for evidence that the decline has run its course.

Sellers are waiting to see whether support breaks.

And Bitcoin, sitting around $62,607, is caught in the middle.

The next move could determine whether August becomes a month of recovery or another test of the market's ability to hold its ground.

Move your Bitcoin with Monica

Whether you are converting Bitcoin to naira or managing other cryptocurrencies, Monica gives you a simple way to handle your crypto transactions alongside everyday payments.

Download Monica Here https://monica.cash/app and make your crypto-to-naira transactions easier.