Bitcoin in consolidation phase, market cautious ahead of trade deadline

Bitcoin edged higher on Tuesday but remained in a consolidation phase after hitting a new high last week.

The market could continue to benefit from a supportive environment.

The enactment of the GENIUS Act, the United States’ first comprehensive stablecoin legislation, marks a material shift in regulatory posture.

Simultaneously, corporate treasury allocations into Bitcoin confirm institutional confidence in digital assets and investor appetite. 

However, institutional activity has moderated after a series of strong inflows, highlighting some correction risks. In this regard, Bitcoin ETFs recorded net outflows on Monday, a marked shift from prior accumulation, as inflows gradually decreased from a peak of USD 1.1 billion earlier this month.

The outflows may reflect investor caution in light of unresolved macro-risks. The looming August 1st trade deadline remained a source of uncertainty for investors and could fuel moves toward safe-haven assets. Investors could also monitor Fed members’ comments, which could affect monetary policy expectations.