Bitcoin's price dropped to $107,400 after a strong rejection at $110,500, coinciding with $1 billion in spot Bitcoin ETF inflows. This 2.8% decline has left traders puzzled, particularly as Bitcoin had been stable around $107,400 for most of the preceding week. Market sentiment seems impacted by profit-taking and concerns over potential effects from import tariffs and a global trade war that could worsen investor confidence. Additionally, a dormant Bitcoin wallet moved around 80,000 BTC, raising alarms among some investors, though such movements do not typically precede immediate sales and are often routine. Experts argue that macroeconomic factors, like rising US debt and fiscal deficits, coupled with an uncertain trade environment, more convincingly explain the price drop than any crypto-specific news. Significant transfers from large wallets often lead to fear, uncertainty, and doubt (FUD), pressuring prices but typically do not indicate long-term trends. Consequently, macroeconomic conditions appear to be the primary driver affecting Bitcoin's inability to maintain its previous highs.

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