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

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, preventing sell orders from being absorbed, leading to price declines. Second, ETF demand fluctuated drastically, 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 was vulnerable due to the liquidity crisis and insufficient demand, putting downward pressure on prices.