Important takeouts:
Despite the billion-dollar spot BTC ETF inflow, Bitcoin fell 2.8% as the market digested billion-dollar wallet transfers in 2011.
The US import duties and fiscal deficits may be weighing Bitcoin’s investor sentiment.
Bitcoin (BTC) fell to $107,400 on Friday after facing a strong rejection at a level of $110,500 on Thursday. The drop coincided with a net inflow of $1 billion into Bitcoin Exchange Sales Funds (ETFs) over two days. Traders are in a hurry to justify a 2.8% pullback, despite BTC hovering around $107,400 for most of the previous week.
Bitcoin was particularly at an all-time high, so this decline could be reflected simply by making profits before the weekend. Investors are still wary of the potential negative consequences of the World Trade War, especially after US President Donald Trump reaffirmed Wednesday’s deadline for increased import tariffs.
Doortime Bitcoin Wallets Amaze the Market by Traveling 80,000 BTC
Some market participants claim investors were on the verge of alarm after a longtime Bitcoin wallet moved coins for the first time in years. Onchain analysts estimate that the 2011 miners were behind the 80,009 BTC relocation on Friday. This entity has been reported to have over 200,000 BTC in the past.
Concerns about potential sales are valid, but it is not uncommon for large holders moving dormant coins. If the entity was intended to sell, moving so many addresses at once is counterproductive, as it could attract attention and affect prices. In fact, this type of movement reduces the likelihood of immediate sales.
Even in the case of commercial transactions, it seems unlikely that a buyer would absorb $4.3 billion in Bitcoin in one tranch. For comparison, the strategy accumulated 17,075 BTC during June. Still, large wallet transfers often cause FUD (fear, uncertainty, doubt), and can put short-term pressure on prices.
A speech in May dates back to 2013, when it exceeded 3,420 BTC. In November 2024, another wallet moved 2,000 BTC, which had been touched for 14 years. A similar event occurred in March 2024, with 1,000 BTC, November 2023, and another 6,500 BTC. These isolated movements have historically not correlated with long-term trend reversals.
Related: Bitcoin benefits from Trump’s “big beautiful bill”; analysts predict
The most likely reason for Bitcoin’s recent weaknesses reflects an increase in macroeconomic concerns. Michael Hartnett, chief investment strategist at Bank of America Global Research, reportedly advised investors to reduce exposure if the S&P 500 approaches 6,300.
As reported by Bloomberg, Hartnett’s team observed “the bubble risk is rising” following the US government’s approval of a “$3.4 trillion fiscal package that cuts taxes.” A worsening fiscal outlook could weaken long-term demand for government bonds, which could put pressure on the broader risk markets, including Bitcoin.
At the same time, the Trump administration reportedly began sending “unilateral tariff charges” notifications to other countries if the trade contracts are not reached before the deadline next Wednesday. Rather than a specific crypto-related factor, this economic uncertainty provides a more compelling explanation for Bitcoin’s inability to hold the $110,000 level.
This article is for general informational purposes and is not intended to be considered legal or investment advice, and should not be done. The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or express Cointregraph’s views and opinions.
