On the evening of July 1, the first cryptocurrency rebounded from a 21-month low of around $57,700, rising above $60,000. This movement followed comments from Federal Reserve Chairman Kevin Warsh regarding persistently high inflation in the U.S.

Hourly chart of BTC/USDT on Binance. Source: TradingView.

At the same time, Ethereum returned to the $1,600 mark.

Hourly chart of ETH/USDT on Binance. Source: TradingView.

The day before, the Fed Chairman declined to hint at a decision regarding interest rates for the upcoming meeting at the end of July but noted a weak economic backdrop.

"We are all focused on ensuring price stability; it may not be our only activity, but if there is one common theme I've heard over the past couple of days, it's openness to issues around artificial intelligence and productivity. However, we all looked around and saw that prices are too high," Warsh stated.

According to the FedWatch Tool, investors see a 70.6% chance of maintaining the current rate, while 29.4% anticipate an increase.

Source: FedWatch Tool.

Nearly 50% expect tightening of monetary policy by the September Fed meeting.

Other factors continue to restrain the growth of the crypto market. The yield on five-year U.S. government bonds has risen to 4.22%, gold has dropped 12% over the past two months, and the dollar index (DXY) is nearing a yearly high.

Weekly chart of DXY. Source: TradingView.

Additional pressure on Bitcoin's price comes from outflows from spot Bitcoin ETFs. According to SoSoValue, June saw a net outflow of $4.5 billion from these funds, the highest since their inception.

Source: SoSoValue.

The daily outflow streak has now continued for 10 consecutive days.

Analyst using the pseudonym Darkfost noted that inflows from retail investors (<1 BTC) to crypto exchanges are at a record low. The average daily inflow on Binance has dropped from 2,690 BTC in 2021 to the current 329 BTC.

Source: Darkfost/X.

The expert linked this decline to investors shifting to other instruments, such as exchange-traded funds. In the long term, this could strengthen Bitcoin's position by reducing direct selling pressure.

Analysts at CryptoQuant reported that Bitcoin's bottom may be approaching, as the percentage of losses on UTXO has reached 60%.

Source: CryptoQuant/X.

"An upward trend in this metric indicates that the share of investors in a losing position is increasing. Investor losses are reaching peak levels. This is a signal that the market is very close to the bottom," the company added.

It is worth noting that Bitcoin fell approximately 20% in June, marking its worst monthly performance in four years.