Bitcoin fell below $63,000 to its two-week low as sentiment weakened following disappointing earnings from Coinbase Global Inc., which reported its third straight quarterly loss. According to The Economic Times, the cryptocurrency was trading at $62,972 mark, with the decline attributed to weaker-than-expected earnings from Coinbase Global Inc. and Strategy Inc., signaling that speculative investors are pulling back from the market. Coinbase shares have matched Bitcoin's performance, declining nearly 28% in 2026, reflecting the close correlation between the crypto exchange and the broader cryptocurrency market.
Bitcoin tumbled as much as 2.9% to $63,018, marking its lowest level in 11 days amid concerns over potential Federal Reserve rate hikes. As reported by Bloomberg, Citadel Securities expects the US Federal Reserve to raise rates by a quarter percentage point on Wednesday, a surprise move that would strengthen Chairman Kevin Warsh's credibility in the battle with inflation. Traders see a roughly one-in-three chance of a rate hike, with rising borrowing costs driving investors away from risk assets such as cryptocurrencies. Ether also declined as much as 4.1%, with Bitcoin later paring some losses to be down 2.5% at around 6:10 a.m. in New York.
The broader cryptocurrency market experienced significant corrections, with major altcoins like XRP and Solana seeing corrections of up to 6.53%, while Tron, Hyperliquid, and Dogecoin also declined. However, some altcoins showed resilience, with BNB and Cardano rallying up to 1%. According to The Economic Times, the global crypto market capitalization decreased, reflecting investor caution and mixed institutional flows. In the past 24 hours, Bitcoin fell 2.04% and Ethereum was down 2.02% to trade at $1,865 mark.
Bitcoin spot ETFs have recorded net outflows of $476.9 million over the recent period, with investors pulling out $11.6 million from the funds on Monday after three consecutive days of outflows. According to Bloomberg, this represents a fresh shift in Bitcoin's ETF inflow after signaling a return in institutional demand. The Coinbase Premium Index has remained negative throughout July, with U.S. investors leading the selling pressure. These conditions suggest that most major institutional players are dumping Bitcoin, with the recent decline further underscoring the lack of participation from these key market players.
To invalidate the current market bearishness, Bitcoin bulls need to flip ALMA at $64,269 and close above $65,700, according to AMBCrypto analysis. The prolonged market weakness largely stems from the absence of institutional capital, with the recent decline further underscoring the lack of participation from these key market players. According to Piyush Walke from Delta Exchange, the crypto market is becoming increasingly sensitive to global liquidity conditions and trends in the technology sector, making August a crucial month that could determine Bitcoin's next major directional move. The Fear & Greed Index remains in the Fear zone, with traders monitoring macro signals, liquidity conditions, and Fed commentary for the next market direction.
