Bitcoin traded at $61,000 on July 3 following a worsening United States inflation outlook.
Data from Cointelegraph Markets Pro and TradingView indicated BTC price strength slowly recovering from a 2% dip at the daily close.
This downturn led to local lows of $60,561 on Bitstamp, erasing gains from the weekend.
The mood deteriorated further as Jerome Powell, chair of the U.S. Federal Reserve, spoke about the economy and monetary policy at an event in Portugal.
Powell explained that the Fed needed more convincing that conditions were right to lower interest rates, a key move being closely watched by crypto and risk asset bulls.
âWe just want to understand that the levels that weâre seeing are a true reading on what is actually happening with underlying inflation,â Powell said, quoted by Reuters and others.
Markets slightly reduced the odds of a rate cut coming at the September meeting of the Fedâs Federal Open Market Committee (FOMC), with the likelihood standing at around 65% at the time of writing, according to CME Groupâs FedWatch Tool.
âItâs clear that the Fed will continue their âmeeting by meetingâ approach,â trading resource The Kobeissi Letter wrote on X.
âWhile markets are expecting 2 rate cuts this year, the Fedâs latest guidance says 1 cut is coming. The next few months are crucial.â
Bitcoin market participants watched with frustration as BTC/USD returned to the bottom of a familiar range.
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Popular trader Skew noted manipulative liquidity moves on exchanges via order âspoofing,â where overhead resistance was added and removed multiple times.
Spot demand on Binance, the largest global exchange, was at $60,000 âand lower,â he added.
Others noted that Bitcoin had filled the latest âgapâ in CME futures, created by the weekendâs upside.
Charles Edwards, founder of quantitative Bitcoin and digital asset fund Capriole Investments, expressed concern over the latest BTC price action.
Markets, he argued, had not yet reconciled with the ongoing capitulation phase among miners, a phenomenon recently reported by Cointelegraph.
âPrice has not yet reflected the onchain obliteration,â he warned X followers. âIt doesnât have to happen, time also heals all wounds, but Bitcoin is not patient.
Either weâre lucky, and price just consolidates between $60-70K for up to 2 months, or we puke and get a healthy overdue correction.â
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