Bitcoin trades near $65,700 as AI-led inflation concerns cap gains despite strong ETF demand

Bitcoin remained close to $65,700 on Thursday, trading around $65,770, as robust institutional demand helped counter concerns that rising AI-driven infrastructure spending could fuel inflation and limit gains in risk assets.

Over the last 24 hours, Bitcoin slipped 0.2%, while Ethereum advanced 0.4% to approximately $1,924. Among leading altcoins, BNB, XRP, Solana, Tron, Hyperliquid, Dogecoin, and Cardano posted gains of up to 2%, reflecting mixed but generally stable market sentiment.

According to market analysts, Bitcoin is currently consolidating near the $65,700 level as investors weigh strong institutional buying against ongoing macroeconomic challenges. Increased investment by major technology companies in AI infrastructure—including data centers, advanced semiconductor technology, and energy resources—has raised inflation expectations, contributing to higher bond yields and limiting upside momentum for cryptocurrencies and other risk-sensitive assets.

Geopolitical developments have also added uncertainty following restrictions on Iran's exports. Nevertheless, institutional confidence in Bitcoin remains strong. U.S. spot Bitcoin ETFs recently recorded a sixth consecutive day of net inflows, attracting $203 million in a single session and bringing cumulative inflows during the period to nearly $930 million.

Meanwhile, the total cryptocurrency market capitalization dipped slightly by 0.07% to around $2.24 trillion. Analysts noted that some investors have started taking profits after Bitcoin's recent recovery, although the cryptocurrency continues to hold above the key $65,600 support level.

During the past week, Bitcoin gained approximately 1.5%, while Ethereum added 0.2%. Several major altcoins, including XRP, Solana, Tron, and Cardano, climbed as much as 6%, whereas BNB, Hyperliquid, and Dogecoin experienced declines of up to 12%.

Market observers also highlighted that Bitcoin traded near $65,800 after a modest one-day decline, with immediate support levels identified around $65,500 and $65,000. Lower exchange inflows compared to early June indicate that short-term selling pressure has eased. However, recent accumulation has largely come from wallets holding between 1,000 and 10,000 BTC, while participation from smaller investors remains relatively subdued.

From a technical standpoint, Bitcoin continues to trade within a neutral range, with moving averages signaling underlying strength while momentum indicators suggest traders are waiting for a decisive breakout. Analysts believe a sustained move above $67,200 could pave the way toward $68,000 and potentially $70,000, whereas a drop below $64,150 may trigger a correction toward the $62,500–$63,000 range. Ethereum also continues to display relatively stronger momentum, maintaining support above $1,880.

Despite short-term pressure from higher oil prices, elevated interest rate expectations, and broader macroeconomic uncertainty, analysts believe the cryptocurrency market remains resilient. Continued institutional participation and consistent ETF inflows are providing a solid foundation for Bitcoin, although uneven demand and profit-taking near the $70,000 resistance level could contribute to increased market volatility ahead of upcoming U.S. Federal Reserve policy decisions.

Voice Of Osiz

Bitcoin's resilience amid macroeconomic uncertainty highlights the growing maturity of the cryptocurrency market and the strength of institutional participation. Consistent ETF inflows demonstrate increasing confidence in digital assets despite short-term volatility driven by inflation and global economic factors. At Osiz, we believe this evolving market reinforces the need for secure, scalable, and innovative blockchain solutions that empower crypto businesses to thrive. From crypto exchanges and wallets to AI-powered trading platforms, advanced technology will play a vital role in shaping the future of digital finance. As institutional adoption accelerates, businesses must invest in reliable blockchain infrastructure to stay competitive. We remain committed to delivering next-generation crypto solutions that enable organizations to capitalize on emerging opportunities in the rapidly evolving digital asset ecosystem.

Source: TheEconomicTimes.com