Bitcoin's recent sell-off has been fueled by increasing macroeconomic worries, including a significant rise in the US trade deficit and issues with Chinese banks. The trade deficit surged 22% in July, reaching $103.6 billion, indicating potential challenges for economic growth in the third quarter. This uncertainty caused Bitcoin to drop below $108,000, prompting $137 million in liquidations of leveraged bullish positions. Additionally, an unprecedented wave of insider stock sales and reports of rising bad debts in Chinese banks have heightened investor caution. Major sales included significant transactions by executives at Walmart and Snowflake. Furthermore, the AI sector is facing its own challenges, with stocks like Nvidia experiencing declines despite positive earnings. Additionally, market signals show a preference for safety as Treasury yields fall amid ongoing inflation. These macroeconomic pressures remain the dominant force driving Bitcoin's decline as many traders reduce their exposure ahead of the upcoming US holiday.

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