Analysis: US Market Demand Remains Weak, Bitcoin's July Rally May Be Unsustainable

BlockBeats News, July 7th, multiple indicators show that Bitcoin's July rally remains fragile. One of the most-watched indicators, the Coinbase Premium Index, has been negative for 50 consecutive days. This index measures the price difference of BTC between the U.S. exchange Coinbase and Binance. The price of BTC on Coinbase has been consistently lower than on Binance, indicating relatively weak demand in the U.S. market. Meanwhile, the U.S. Bitcoin spot ETF has seen net outflows for 8 consecutive weeks, and historically, Bitcoin bull markets have usually coincided with a consistently positive Coinbase Premium Index.

Japanese bond yields continue to rise, with the yield on 10-year Japanese government bonds reaching a 30-year high, leading to higher borrowing costs in the U.S., UK, and Germany. If U.S. bond yields continue to rise, it could pose resistance to BTC. A Bitfinex analyst stated that until BlackRock's iShares Bitcoin Strategy ETF resumes inflows, institutional buying pressure has not been confirmed.

Singapore-based crypto trading firm QCP Capital stated that if the Bitcoin spot ETF continues its inflow trend from last Friday, the short-term backdrop remains constructive. The firm added that if BTC clearly reclaims $64,000 this week, it will further boost market sentiment and alleviate concerns in the market regarding Bitcoin-holding companies like MicroStrategy (MSTR).