CryptoQuant: Bitcoin fell in late July due to insufficient liquidity, volatile ETF demand, and weak accumulation

PANews reported on August 5th that according to CryptoQuant analyst Arab Chain, Bitcoin's decline in late July was primarily driven by three factors: First, the liquidity inventory ratio began to decline rapidly in mid-July, reaching a three-month low. This lack of liquidity made the market fragile, and the inability to absorb sell orders led to price declines. Second, ETF demand fluctuated wildly, with unstable capital inflows and a lack of replacement demand, weakening price support. Third, the slow and limited accumulation of smart addresses failed to provide sufficient support during market weakness. Overall, the Bitcoin market has become fragile due to the liquidity crisis and insufficient demand, putting downward pressure on prices.