Bitcoin's price at $107,400 is a result of multiple factors, including significant ETF inflows and macroeconomic conditions.
Reasons for Bitcoin's Price Drop
Bitcoin fell to $107,400 after rejecting at $110,500. This decline coincided with $1 billion in net inflows into Bitcoin exchange-traded funds (ETFs) over two days. Traders began analyzing the situation as the 2.8% drop occurred despite previously stable indicators.
Movement from Dormant Wallet
Market participants are concerned following the movement of funds from a long-dormant wallet that transferred 80,009 BTC. Speculation raises concerns that this could signal a potential sale. However, analysts suggest that such movements do not always imply an intent to sell and may just be part of usual market activity.
Macroeconomic Factors and Their Impact
The main reasons for Bitcoin's recent weakness may be related to a worsening macroeconomic situation. Rising fiscal deficits in the US and trade tensions are also influencing investor sentiment. US President Donald Trump has reaffirmed the intention to increase import tariffs, adding uncertainty to the market.
The drop in Bitcoin's price to $107,400 is attributed to several factors, including macroeconomic conditions and the transfer of funds from dormant wallets. Investors continue to monitor changes, highlighting the high volatility of the cryptocurrency market.
