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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Amid escalating investor fears of monetary tightening and a decline in risk appetite, Bitcoin faces a critical test at the psychological support level of $60,000. The pressure follows a record weekly outflow of $1.79 billion from US spot Bitcoin ETFs, according to data from The Block. This retreat reflects concerns over a potential Federal Reserve rate hike as well as a broad sell-off in AI stocks.
The development comes as economic data showed inflation remaining above targets, with Canada's annual inflation rate hitting 3.2% in June versus a forecast of 3.0%, reinforcing hawkish central bank stances. The AI sector also experienced sharp declines alongside rising borrowing cost fears, adding pressure on risk-linked digital assets. US spot ETFs have exhibited increased sensitivity to macro factors, with last week's outflows being the largest since their launch in January.
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Sign InThe $60,000 level remains pivotal for Bitcoin's direction, as a break below could accelerate selling toward lower levels. Investors are focusing on any hints from the Fed regarding the rate path, particularly with no major US economic data due this week. Markets will also monitor spot ETF flows as a gauge of near-term capital movements.