Bitcoin Dip Explanation at the end of July: What caused it? (Cryptoquant)

This year’s hottest month saw some of the hottest climbs of the biggest digital assets that have reached an invisible territory unintended by global demand.

After a month’s event, the market is naturally cooled, with speculation about the next direction increasing. Here’s Cryptoquant’s view on why BTC was soaked at the end of July:

Potential triggers

In July, marking the second half of the year, there was an epic BTC run, with its assets reaching a new all-time high of just over $123,000. However, at the end of the month, Bitcoin experienced a significant drop, losing 7-8% of its value, dropping to a weekly low of $112,000.

Given that this ATH is at a level not seen previously, it was natural that some profits would be generated by institutions, investors, miners or OG owners who decided to leave at this price range. A notable sale took place in the last few days of the month. Galaxy Digital disposed of 80,000 BTC for its clients, worth around $9 billion.

It was a strong month for BTC Exchange-Traded Funds (ETFS), but it has only marked an outflow of four days, but anything that rises has to go down, right? More than $920 million remained ETFs on July 31st and August 1st, according to SoSovalue data. The following graph shared by Cryptoquant is a good visualization of the sudden drop.

“The inflow of ETFs was intermittent and was not stable during the period when funds were withdrawn from the ETF. There was no need for alternatives to make up for this shortfall.”

Despite postings from the US economy, the macroeconomic scene was also not very useful at the latest Federal Reserve Conference last week. Increased by 3%. President Trump used the opportunity to urge Fed Chairman Jerome Powell to cut fees, but they remained unchanged.

Future outlook

Cryptocurrencies with the largest market capitalization have been going on for several days and appear to be still recovering from them.

Coinglass’ latest liquidation heatmap shows strong investors’ trust that Bitcoin will regain its previous levels.

Michael Van de Poppe said in X that “Bitcoin is doing great things,” but also highlighted the possibility that BTC is not entirely out of the forest yet.

“Refusal here? Yes, that means we’re retesting the area around 110-112K.”

BTC author and advocate Robert Kiyosaki is still leaning towards a more bearish stance, citing historically low August levels. He wouldn’t be embarrassed to buy dip, but if that happened.