Bitcoin slid to a price of $107,400 on Friday even in the wake of a substantial $1B inflow into spot Bitcoin ETFs. This unexpected 2.8% drop has left market participants puzzled, especially since the cryptocurrency had been stable around the $107,400 mark for most of the previous week.
The dip might be a result of investors cashing in their profits before the weekend. At the time, Bitcoin was only 1.5% below its record peak. Investors are also concerned about the potential fallout of an international trade conflict, particularly after President Donald Trump of the United States confirmed the July 9 deadline for an increase in import tariffs.
Some investors believe that the market was spooked by the movement of a long-inactive Bitcoin wallet. Onchain analysts hypothesize that a miner from 2011 was behind Friday’s 80,009 BTC transfer, stirring up fears of a potential sale. Despite these fears, it’s not uncommon for large holders to move dormant coins. In fact, if the holder had plans to sell, shifting such a large number of coins could be counterproductive as it might affect the market price.
Moreover, even with an over-the-counter deal, it seems unlikely that a buyer would take on $4.3 billion in Bitcoin in one go. For context, Strategy accumulated 17,075 BTC over the course of June. Nevertheless, such large transfers often spark market fear, uncertainty, and doubt (FUD), which can exert short-term pressure on prices.
Historical data shows that this kind of isolated movement does not typically correlate with long-term trend reversals. For instance, addresses from 2013 transferred over 3,420 BTC in May 2025, and another wallet moved 2,000 BTC in November 2024 that hadn’t been touched for 14 years.
Chief Investment Strategist Michael Hartnett from Bank of America Global Research suggests the recent dip in Bitcoin’s value is more likely due to growing macroeconomic worries. As reported by Bloomberg, Hartnett’s team noted a rise in “bubble risks” following the US government’s approval of a “$3.4 trillion fiscal package that cuts taxes”. The deteriorating fiscal outlook could dampen the demand for long-term government bonds, thereby affecting broader risk markets, including Bitcoin.
Adding to the economic uncertainty, the Trump administration has reportedly started notifying other countries about “setting unilateral tariff rates” should trade agreements not be finalized by the coming Wednesday. This global economic instability, rather than any specific crypto-related factor, might be the real reason behind Bitcoin’s struggle to maintain the $110,000 mark.
