Bitcoin price remains rangebound according to CoinShares after end of outflow streak

After a record-breaking eight-week streak totalling $8 billion in outflows from digital asset investment products, inflows and positive sentiment have temporarily returned for Bitcoin. However, investment specialist CoinShares remains cautious: according to the firm, a breakout above $80.000 is unlikely as long as monetary expectations do not change substantially. The Bitcoin price currently stands at $64.000, almost flat with a decline of 0.1% in the past 24 hours.

Bitcoin is available at OKX and Bybit.

Eight-week outflow streak ends with modest recovery

Last week, $287 million flowed back into the market, ending the longest consecutive outflow period ever for digital investment products. Better-than-expected US inflation data, both CPI and PPI, temporarily gave investors more confidence. In the following days, another $415 million in inflows followed, spread across Tuesday and Wednesday, with Bitcoin being the biggest beneficiary.

That inflow reflects cautious optimism after weeks of pessimism. Earlier, Bitcoin ETFs saw a positive inflow of $79 million, but the broader market remained under pressure. The recovery in inflows is now broader, although CoinShares warns that the fundamental macroeconomic environment remains unchanged.

Upside potential remains limited by macro environment

According to CoinShares, the bottom for Bitcoin has probably been reached or is at least close, but that does not mean a strong rally is imminent. An interest rate cut by the US central bank still seems unlikely. Two better-than-expected data points, one for the labour market and one for inflation, are not enough to change that policy. Moreover, the oil price is rising again due to tensions around Iran, which could further push up inflation expectations for the coming month.

CoinShares therefore expects Bitcoin to remain in a sideways movement in the coming period, also known as range trading. A breakout above $80.000 will only be realistic if there is a clear shift in expectations regarding monetary policy. As long as that does not happen, the upside potential remains limited despite the more positive sentiment of recent days.