Bitcoin's Momentum Limited Despite ETF Inflows and Stock Market Highs

Bitcoin is currently testing a recent resistance level, but the market response has been relatively tepid. Despite the continuous inflow of ETF funds and the stock market reaching new highs driven by retail investors, Bitcoin's upward momentum remains limited, showing a weak trend. As the summer approaches, market activity tends to quiet down, and such a period of consolidation is not uncommon during this time of year.

Market expectations regarding the Fed's policy are changing. With more officials beginning to question the sustainability of inflation brought about by tariffs, expectations of a rate cut are rising, and the Fed's stance is gradually turning dovish. In this context, traders' attention may no longer be focused on the progress of tariff negotiations but instead turning to closely follow the rhythm of the stock market. The strong performance of the US stock market has become a benchmark, and the incremental capital brought in by Wall Street through ETFs may become a significant driver for propelling Bitcoin into a new round of growth.

According to the analyst's forecast, as we enter the summer, market activity tends to quiet down, and such a period of consolidation is not uncommon during this time of year. At the same time, market expectations regarding the Fed's policy are changing. With more officials beginning to question the sustainability of inflation brought about by tariffs, expectations of a rate cut are rising, and the Fed's stance is gradually turning dovish.

In this context, traders' attention may no longer be focused on the progress of tariff negotiations but instead turning to closely follow the rhythm of the stock market. The strong performance of the US stock market has become a benchmark, and the incremental capital brought in by Wall Street through ETFs may become a significant driver for propelling Bitcoin into a new round of growth.