Bitcoin fell 2%, breaking below key technical levels as Strategy sold 1,690 BTC and traders braced for critical inflation data this week. The broader cryptocurrency market mirrored this weakness, with Ethereum, XRP, and Dogecoin sliding in tandem. Despite the price decline, institutional interest remained evident, with spot Bitcoin ETFs recording net inflows of $98.9 million on Friday, while spot Ethereum ETFs saw net inflows of $49.6 million.

Market Performance

Major cryptocurrencies faced downward pressure across the board. Bitcoin traded at $63,902.40, while Ethereum dropped to $1,871.90. Solana fell to $75.94, and XRP declined to $1.01. Meme coins also struggled, with Dogecoin trading at $0.06964 and Shiba Inu at $0.000004628.

Liquidations and Losers

Volatility triggered significant losses for leveraged positions. Data from Coinglass shows that 75,626 traders were liquidated in the past 24 hours for a total of $212.97 million. Among the top losers in the same period were Audiera, Algorand, and Bitcoin SV.

Analyst Perspectives

Trader KillaXBT noted that Bitcoin local tops and bottoms often form after multiple liquidity sweeps, where price triggers stops and traps traders before reclaiming the range. The analyst argues these deviations typically occur when conviction is weakest, causing traders to react late and position in the wrong direction.

Full-time trader Justin Bennett predicts Bitcoin needs a sustained break above $65,400 to open a move toward $67,300-$69,000. He expects a relief rally to sweep July highs before potentially setting up the next leg lower in September.

Corporate Activity

Strategy’s sale of 1,690 BTC coincided with MicroStrategy rejecting the $105 level for the third time. Meanwhile, Bitmine bought 7,391 ETH for $14.3 million, even as its stock (BMNR) dropped 2%. Coinbase CEO Brian Armstrong stated that crypto does not get enough credit for unlocking global financial access with stablecoins, DeFi, and Bitcoin.

What the Numbers Show

The divergence between retail liquidations and institutional inflows highlights a split market sentiment. While 75,626 traders lost $212.97 million in liquidations, the simultaneous $98.9 million inflow into spot Bitcoin ETFs suggests long-term holders are accumulating during dips, betting on the upcoming inflation data to drive prices higher.

Market strategist Jordi Visser argues that Bitcoin is approaching a major inflection point, citing a convergence of macroeconomic constraints and shifting capital flows. In a podcast with Anthony Pompliano on Aug. 8, Visser outlined how weakening U.S. labor conditions and rising long-term Treasury yields are limiting Federal Reserve policy options, creating a favorable backdrop for scarce assets.

The thesis rests on the premise that traditional safe havens are already reacting while Bitcoin lags. Gold, silver, and platinum have recently broken higher, yet Bitcoin has not yet made a comparable move despite recent price action. Visser noted that Bitcoin prices rose 4% over the past week, suggesting the asset may be poised for a technical breakout that could trigger broader market enthusiasm.

Macroeconomic Constraints

Visser highlighted specific labor market data to support his view of constrained policy options. He pointed to aggregate payroll trends being at their weakest six-month level since 2012, excluding the COVID-19 period. This weakness in wages and employment conditions, combined with sharply climbing long-term Treasury yields, leaves the Federal Reserve with fewer attractive policy levers.

AI Volatility and Capital Rotation

A secondary catalyst identified by Visser involves the intersection of artificial intelligence and cryptocurrency. He observed that AI equities have absorbed substantial investor capital due to strong earnings growth but are now experiencing violent swings. This extreme volatility demonstrates the risk of concentrated portfolios in the AI trade, potentially prompting capital to spread into other assets.

Visser believes this rotation could benefit Bitcoin as AI-driven stablecoin and blockchain activity emerge. He expects traditional financial institutions to take the asset class more seriously once measurable revenues, transactions, and network activity can be attached to the intersection of AI and crypto. Despite uncertainty surrounding the CLARITY Act and selling by Strategy (MSTR), Visser maintains that Bitcoin’s resilience strengthens his conviction in an upcoming technical breakout.