Bitcoin has, multiple times in the last 72 hours, attempted to stay above $108K.
Latest price action shows waning buying pressure in the digital asset class despite scaling backing above $100k this week.
The pioneer crypto asset was last trading around $107,500.
Buyers and sellers have significant stakes at this level. If buyers push further, they might deplete the sellers’ liquidity sitting near $108K, sparking upward momentum. This level is an important one to monitor, though the opposite scenario remains possible.
Bitcoin’s price nearly touched the $100K mark after Iran attacked US military bases in Qatar. Many bets were placed on a break above $108K with trading resuming. However, the asset not only bounced back, but the market sentiment has become more cautious, showing increased confidence.
Binance’s Taker Volume exceeded $100 million for the first time since June 9. Currently, trading activity within the ecosystem seems to have risen sharply. However, CryptoQuant pointed out that such increases often relate to retail investor activity or the liquidation of over-leveraged short positions, rather than genuine demand from investors.
Furthermore, net stablecoin withdrawals on derivative exchanges have surpassed $1.25 billion, the highest outflow rate since mid-May.
This indicates a wider withdrawal trend, weakening the structural support for long positions and signifying capital exiting risk-on markets.
Bitcoin’s recent peak coincided with perpetual contract funding rates dropping to their lowest in seven weeks, indicating a cautious market outlook. Usually, in neutral conditions, long traders pay for leverage, so negative funding rates are uncommon.
However, the latest price action highlighted that BTC managed to reclaim its 50-day exponential moving average, a key support level during corrections within a larger bullish trend. Historically, regaining this level has often led to further bullish advances.
Trump Tariffs, Corporate selling hurt Bitcoin
Part of the eroding confidence may stem from the ongoing global trade war initiated by the US in April. Many are set to expire, including the eurozone deal, which lapses on July 9, while some temporary truces exist.
The so-called Trump effect on negotiations has triggered market reactions. The Washington Post reports over fifty changes to existing tariffs after President Donald Trump took office. Heightened trade tensions worry most investors, causing panic. Bitcoin, often viewed as a risk-on asset, has been capped in price because of reckless artificial intelligence spending driving sky-high valuations.
The surge of companies selling Bitcoin to their balance sheets adds another layer of risk. Things seemed normal until Wednesday, when Bit Digital (BTBT), a New York-based Bitcoin mining company listed on NASDAQ, announced plans to sell its mining infrastructure and BTC reserves to transition into Ether. Bit Digital reportedly held 24,434 ETH and 417.6 BTC as of March 31.
Bitcoin as a Mortgage Asset?
Federal Housing Finance Agency (FHFA) Director William Pulte announced on his official X account on Wednesday that he has instructed Freddie Mac and Fannie Mae to prepare to accept cryptocurrency as an asset for mortgage purposes.
Following extensive research and in line with President Trump’s goal of making the US the global center of cryptocurrency, Pulte declared, “ I ordered the Great Fannie Mae and Freddie Mac to get their companies ready to count cryptocurrency as an asset for a mortgage.”
The mortgage markets may change due to this announcement, potentially giving cryptocurrency holders more access to homeownership. However, investors should closely monitor the details of the FHFA proposal, regulatory clarity, and market responses
