Bitcoin Drops 1% After Failing to Sustain $110,000 Rally

Bitcoin (BTC) has experienced a setback in its recent rally, failing to sustain momentum above $110,000. The cryptocurrency reached an intraday high of $110,590 on Thursday but has since retreated, trading around $108,930, marking a nearly 1% decline. Analysts attribute this pullback to the absence of new buyers and the waning of FOMO-driven greed, which could keep BTC below the $110,000-$112,000 range for the time being.

Crypto mining stocks have shown robust performance despite a brief pullback on Thursday. Mining firms such as Riot Platforms, Hive Digital, Hut 8, MARA Holdings, and Bitfarms saw their shares rally between 13% and 28% over four trading sessions. This rally was driven by a favorable macroeconomic backdrop that supports the Federal Reserve’s soft landing narrative. The broader market also saw gains, with the S&P 500 and the Nasdaq Composite reaching new all-time highs. However, the workforce participation rate has declined, which economists attribute to a crackdown on immigration that may have impacted labor supply.

Spot Bitcoin ETFs reported over $600 million in inflows on Thursday, marking their strongest showing in over a month. This influx helped the ETFs surpass the previous mark of $588 million reached on June 24. BlackRock’s IBIT and Fidelity’s FBTC were the primary contributors to Thursday’s inflows, with $224.5 million and $237.1 million respectively. Other ETFs, such as Ark Invest’s ARKB, also reported smaller inflows. Institutional investors have returned to risk assets like Bitcoin due to the anticipation of looser financial conditions under President Trump’s expanded administration policies. Spot Bitcoin ETFs provide a regulated avenue for investors to gain exposure to BTC without the complexities of direct crypto asset ownership.

Analysts believe that Bitcoin (BTC) could gain 40% after President Trump signs the “Big Beautiful Bill” on Independence Day. Crypto investors are anticipating swift gains as the massive spending bill becomes a reality. The flagship cryptocurrency has historically reacted positively to indications that the US will increase borrowing. The new bill is expected to surge the US national debt to $40 trillion, marking a near $17 trillion increase in six years. This unprecedented level of borrowing is seen as a potential catalyst for Bitcoin’s price action.

Bitcoin (BTC) has retreated during the ongoing session after failing to close above $110,000. The cryptocurrency registered a sharp drop at the beginning of the week, falling to a low of $105,328 on Tuesday. However, it recovered on Wednesday, rising nearly 3% to cross $108,000 and settle at $108,845. BTC crossed $109,000 on Thursday, settling at $109,650 after reaching an intraday high of $110,590 before losing momentum during the ongoing session. Crypto entrepreneur Arthur Hayes believes BTC could move to a new all-time high but is still likely to test $90,000 this year. Hayes argues that the bill, which increases the debt ceiling and cuts taxes, could force the US Treasury to borrow more, potentially impacting the price of assets like BTC. However, he believes BTC will ultimately continue pushing upwards. Market data resource Swissblock Technologies highlighted the lack of spot demand as a limiting factor for BTC’s price breakout. K33 Research noted that spot volumes tend to be lower from June to October compared with the rest of the year.