Bitcoin extended its decline for a third straight day, dropping from around $110,000 on Tuesday to nearly $107,000 by Thursday morning. While the flagship cryptocurrency remains above key psychological support levels, recent price action suggests that bullish momentum is fading as traders await a stronger narrative or catalyst to reignite buying interest.

The crypto market is showing signs of fatigue, with the lack of major headlines contributing to the drift lower. In a space largely driven by sentiment and momentum, the absence of fresh triggers has left Bitcoin vulnerable to slow and steady pullbacks. Despite the soft retreat, Bitcoin is still less than 4% away from its all-time high of $111,900 — a breakout that could easily dominate financial headlines if achieved.

Macroeconomic developments are also applying pressure. A higher-than-expected U.S. Consumer Price Index (CPI) reading this week showed inflation rising to 2.4% in May. The data undermined expectations for imminent interest rate cuts from the Federal Reserve, disappointing crypto investors who were counting on looser monetary policy to boost speculative assets like Bitcoin.

The prospect of prolonged higher rates makes risk-on assets less attractive, and crypto is no exception. As long as inflation remains sticky and the Fed maintains its cautious stance, the path upward for Bitcoin could remain choppy. Traders will now look to upcoming economic data and Fed commentary for clues on whether monetary easing might be back on the table later this year.

Still, Bitcoin’s price is not far off its record highs, and its long-term trend remains intact. For now, market participants are watching the $105,000–$107,000 zone for support while keeping an eye on any breakout signs that could send the digital asset soaring past its previous peak. Until then, volatility and sentiment will likely continue to dominate short-term price direction.