Bitcoin (BTC) remains stuck at $77,000 U.S. as investors continue to sit on the sidelines and adopt a wait-and-see view of cryptocurrencies.
Analysts say that the largest cryptocurrency by market capitalization remains caught in a narrow range as trading remains muted and investors wait to see how geopolitics plays out.
Prediction markets expect BTC to remain rangebound in coming days.
Traders on Polymarket currently see Bitcoin likely to remain above $74,000 U.S. this week, with a 60% chance it finishes the trading week above $76,000 U.S.
There had been hope that Bitcoin and other cryptocurrencies such as Ethereum (ETH) would rise alongside stocks amid reports of a lasting peace deal between the U.S. and Iran.
However, Glassnode says that weak trading activity points to a cautious market waiting for the next macro catalyst before moving meaningfully higher.
Analysts also note that institutional demand for cryptocurrencies remains weak right now, with few hedge funds or other institutions buying Bitcoin and other digital assets.
After pulling in $2.44 billion U.S. in April, U.S. spot Bitcoin exchange-traded funds (ETFs) have lost nearly all that amount over the past two weeks as institutions sell their holdings.
Crypto is also being hurt by expectations of higher-for-longer interest rates due to rising inflation, a situation that lifts the U.S. dollar and Treasury yields and puts pressure on Bitcoin.
BTC hit an all-time high of just over $126,000 U.S. last October.
