Bitcoin’s recent pullback from $110,500 to $107,000 has left traders questioning the catalysts behind the drop—despite ongoing inflows into
bitcoin ETFs. Profit-taking near resistance levels, dormant wallet movements, and broader macroeconomic tensions are shaping the narrative. While short-term caution prevails, analysts remain bullish on Bitcoin’s long-term trajectory, citing institutional interest and historical halving cycles.
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### Why Did
Bitcoin Drop Despite ETF Inflows?
Bitcoin’s 3% dip to $107,000 on Friday came as a surprise, especially since U.S. Bitcoin ETFs recorded $1 billion in inflows over two days. The BTCC research team attributes this to:
1. Profit-taking near ATH resistance : Traders locked in gains as Bitcoin hovered just 1.33% below its $111,970 peak.
2. Weekend volatility fears : Reduced exchange volumes ($5.9B daily avg. in June, only 7% above yearly avg.) signaled risk aversion.
3. Macro jitters : Trump’s proposed trade tariffs reignited global market anxieties.
4. Dormant wallet activity : 80K BTC moved after 14 years, though CryptoQuant confirmed it was consolidation, not selling.
5. Institutional hesitation : Bank of America’s Michael Hartnett warned of stretched equity valuations, spilling over into crypto.
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### Are Dormant Bitcoin Wallets a Threat to the Market?
When eight legacy wallets moved 80K BTC ($8.7B), retail traders panicked—but data tells a different story:
- No mass sell-off : Lookonchain tracked the transfers to new wallets, likely institutional custody shifts.
- Historical context : Similar movements preceded rallies in 2020 (e.g., 50K BTC shuffle before a 20% surge).
- On-chain metrics : Stable exchange reserves (per CoinGlass) suggest holders aren’t dumping.
- Whale behavior : Julio Moreno noted these wallets last moved coins when BTC was under $1,000.
- Market impact : The transfers coincided with a 2-hour price dip, quickly recovered.
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### How Are Macro Risks Influencing Bitcoin?
Global economic pressures are adding to Bitcoin’s volatility:
1. U.S. fiscal policy : A $3.4 trillion tax-cut bill passed by the House raised bubble concerns (per Bank of America).
2. S&P 500 correlation : BTC dipped as the S&P neared 6,300, a key resistance level.
3. Commodity swings : Oil and gold slumped amid trade war fears, dragging crypto sentiment.
4. Currency markets : Dollar strength (DXY up 0.8% weekly) pressured risk assets.
5. Institutional flows : Bitcoin ETF inflows slowed by 12% month-over-month (TradingView data).
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### What’s Next for Bitcoin’s Price?
Analysts are split on short-term action but agree on long-term upside:
- Bull case : Crypto Seth predicts a new ATH within weeks, citing ETF demand and the September halving cycle.
- Technical view : BTC’s RSI (58) suggests room for growth before overbought conditions (per BTCC charts).
- Historical pattern : Post-halving peaks typically occur at 18 months (next target: September 2025).
- Support levels : $105,000 held strong during the pullback, a critical floor.
- Bear counterpoint : Slowing on-chain activity hints at consolidation before another leg up.
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### FAQ
Bitcoin Price Dynamics
Why did Bitcoin drop after nearing its all-time high?
Profit-taking NEAR resistance, macroeconomic uncertainties, and misinterpreted dormant wallet movements contributed to the dip.
Should investors worry about dormant Bitcoin wallets activating?
Not necessarily—data shows these are likely internal consolidations, not preparatory sell-offs.
How do Bitcoin ETFs affect price volatility?
While inflows indicate demand, short-term traders often use ETF momentum to trigger reversals.
Market Trends
What macroeconomic factors are impacting Bitcoin?
Trade war risks, U.S. fiscal policy, and equity market valuations are key drivers.
When could Bitcoin hit a new peak?
Analysts project September 2025 based on halving cycles, assuming historical patterns hold.
