💥Bitcoin (BTC) price fell more than 6% at some point this week through Thursday, extending losses for the second consecutive week, as it faced rejection from a key resistance barrier. However, BTC is recovering slightly on Friday as the U.S. (US) Bitcoin Spot Exchange-Traded Fund (ETF) recorded more than $103 million in inflows through Thursday and on-chain data shows long-term optimism for the largest crypto asset by market capitalization.

💥Bitcoin Reaction This Week

Bitcoin continued to decline this week after falling 4.2% last week as it hit the psychological $66,000 level.

Bitcoin fell slightly at the start of the week, a move that could be related to lower inflows into U.S. spot Bitcoin ETFs, signaling lower institutional demand. The decline in institutional demand can be clearly seen by comparing weekly inflow data from Coinglass.

👉On Tuesday, Bitcoin hovered around $62,000. A crypto asset trading firm, QCP Capital, and a Bloomberg report highlighted that Chinese investors may have been selling USDT to finance stock purchases since late September, while BTC remained flat.

👉On Wednesday, Bitcoin continued to fall more than 2.5%, losing the $62,000 support level.

At the same time, Lookonchain data shows that the U.S. government is now ready to sell 69,370 BTC — worth $4.33 billion — seized from a mysterious SilkRoad user known as “Individual X.” The incident came to light when the U.S. Supreme Court refused to take up a lawsuit by Battle Born Investments over the ownership of the 69,370 BTC seized from Silk Road, giving the government full control of the seized funds.

👉On Thursday, Bitcoin experienced significant volatility, falling from a high of $61,321 to a low of $58,946 before closing at $60,326. The latest US inflation data for September may have influenced this. The Consumer Price Index (CPI) rose 2.4% year-on-year in September, slowing from 2.5% in August but above market expectations of 2.3%. Meanwhile, the monthly CPI rose 0.2%, matching August’s increase, according to the US Bureau of Labor Statistics (BLS).

If US interest rates continue to fall, this could be a positive sign for risk assets like Bitcoin, as investors will consider investing their money in risky assets for high returns instead of keeping their money at lower interest rates in the bank.

As of Friday, Bitcoin price was trading just above $61,000, recovering some of its initial losses during the week.