Bitcoin experienced a swift drop to $117,000 just a day after reaching an all-time high of $124,089, resulting in over $227 million in bullish liquidations. Despite the price decline, the futures market showed neutrality, with the BTC futures premium remaining within a 5%–10% range. This suggests that the previous price spike was not overly leveraged and traders are generally calm. The recent inflation data, with the US Producer Price Index rising by 3.3% in July, has caused concerns over interest rate cuts, but this is unlikely the sole factor in Bitcoin's decline. Economic remarks from Treasury Secretary Scott Bessent countering potential government Bitcoin acquisitions further spooked traders. Meanwhile, BTC's options skew reflects a balanced risk outlook, indicating that traders are resilient, despite Bitcoin's repeated failures to maintain levels above $120,000. Caution and reduced confidence in a breakout above $150,000 seem prominent as macroeconomic factors weigh on market sentiment, alongside soaring US debt surpassing $37 trillion.

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