3 internal Bitcoin factors combined to knock down the price
The month of July marked a milestone for Bitcoin (BTC), which reached a historical maximum of $ 123,000, but the euphoria lasted little. An abrupt fall brought its price to $ 112,000, stabilizing now around $ 113,000 today.
Three internal factors, beyond the global macroeconomic situation, triggered this correction, according to on-chain data.
The first blow came from a liquidity crisis in the exchanges. In mid -July, the liquidity inventory ratio collapsed, represented by the number of months of liquidity available for sale on platforms (blue line), reaching levels not seen in more than three months. This indicator reveals a shortage of BTC available for sale.
“In healthy markets, this would boost prices for scarcity, but the opposite happened,” explains an analysis by Arab Chain, collaborator of the on-chain data platform, Cryptoquant.
Without a solid purchase demand, The market became fragile, unable to absorb small sales orders without prices collapse. This dynamic, similar to that of “thin markets”, amplified the impact of bearish movements.
The following graph is a clear visual representation of the three on-chain factors that contributed to the recent correction of Bitcoin’s price in July, showing a drastic decrease in available liquidity, an unstable demand of ETF and an insufficient accumulation by the “smart wallets.” These combined elements left Bitcoin vulnerable.
Erratic Demand of Bitcoin ETFs
On the other hand, Bitcoin ETF demand in the United States showed instability. After weeks of positive flows, Julio brought acute peaks of entries followed by pronounced falls.
“There was no alternative demand to compensate for this decrease,” says the analyst. The exit of 404 million dollars in investment funds, including ETF in cash, last week, weakened the price support, as Cryptonotics reported.
Although the net tickets of 12.2 billion dollars in the last 30 days – self -experience of 50% of the annual total – reflect a moderate benefits, The lack of constancy in the institutional flows opened the door to correction.
Weak accumulation of smart portfolios
Finally, the accumulation of bitcoin by “intelligent portfolios” (the pink area in the previous graph) failed to counteract the fall. Although some addresses showed purchases, the rhythm was slow and constant, without significant increases. This type of investors stores Selected assets that follow a specific topic or strategy, in this case focused on BTC.
“There was a latent demand, but it was not active or synchronized with the moment of the fall,” says the analysis. This limited accumulation could not offer robust support in front of a market weakened by low liquidity and the instability of ETFs.
The combination of these factors – liquidity crisis, intermittent demand for ETF and insufficient accumulation – left Bitcoin vulnerable. On-chain data reflect a market that, Despite his historical strength, he faced an internal storm that led him to give ground after his last maximum.
