Bitcoin’s Bizarre Ballet: $1B ETF Inflow, Yet Price Plummets! 🤷‍♂️

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Key takeaways:

  • Despite a generous $1 billion in spot BTC ETF inflows, Bitcoin took a nosedive of 2.8%, all while the market was still trying to digest a massive 2011-era wallet transfer. 🤯

  • US import tariffs and fiscal deficits are casting a long, dark shadow over Bitcoin investor sentiment. ☁️

Bitcoin (BTC) found itself in a peculiar predicament on Friday, trading down to $107,400 after a strong rejection near the $110,500 level on Thursday. The market, in all its wisdom, decided to take a $1 billion net inflow into spot Bitcoin exchange-traded funds (ETFs) over two days and turn it into a 2.8% pullback. Traders, scratching their heads, are now scrambling to find a reason for this peculiar behavior, especially since BTC had been comfortably lounging around $107,400 for most of the prior week. 🛋️

This decline, one might argue, could simply be a case of profit-taking ahead of the weekend. After all, Bitcoin was a mere 1.5% below its all-time high. However, the specter of a global trade war looms large, particularly after United States President Donald Trump, with his characteristic flair, reaffirmed the July 9 deadline for increasing import tariffs. 🗞️

Dormant Bitcoin Wallet Spooks the Market by Moving 80,000 BTC

Adding to the market’s confusion, some market participants are pointing fingers at a long-dormant Bitcoin wallet that decided to stir from its slumber and move 80,009 BTC for the first time in years. Onchain analysts, with their noses buried in data, speculate that a miner from 2011 was behind this Friday’s transfer. It is said that this entity once held over 200,000 BTC, a treasure trove of digital gold. 🏆

While the fear of a potential sale is understandable, large holders moving dormant coins is not exactly a rare occurrence. If the entity intended to sell, moving so many addresses at once would be counterproductive, as it could draw unwanted attention and impact pricing. In fact, such a move decreases the likelihood of an immediate sale. Even in the case of an over-the-counter transaction, it seems highly improbable that a buyer would absorb $4.3 billion in Bitcoin in a single tranche. For context, Strategy accumulated 17,075 BTC throughout June, a mere fraction of the 80,009 BTC in question. 🤔

Historically, similar large wallet transfers have not correlated with long-term trend reversals. In May 2025, addresses dating back to 2013 transferred over 3,420 BTC. In November 2024, another wallet moved 2,000 BTC that had been untouched for 14 years. Similar events occurred in March 2024, with 1,000 BTC, and in November 2023, with another 6,500 BTC. These isolated movements, while causing short-term jitters, have not been the harbingers of doom that some might fear. 🎭

However, the most likely reason for Bitcoin’s recent weakness lies in the mounting 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. According to Bloomberg, Hartnett’s team observed that “bubble risks were rising” following the US government’s approval of “a $3.4 trillion fiscal package that cuts taxes.” The worsening fiscal outlook may dampen demand for long-term government bonds, which could, in turn, weigh on broader risk markets, including Bitcoin. 📉

Adding to the economic uncertainty, the Trump administration has reportedly begun sending notices to other nations, setting unilateral tariff rates if trade deals are not reached before next Wednesday’s deadline. This economic uncertainty, rather than any specific crypto-related factor, offers a more convincing explanation for Bitcoin’s inability to hold the $110,000 level. 🤷‍♂️

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of CryptoMoon.

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2025-07-05 01:37