Bitcoin's recent sell-off may be influenced by macroeconomic concerns, not specific crypto-related factors.

Bitcoin fell 2.8% despite $1 billion in spot BTC ETF inflows, dropping to $107,400 after a 2011-era wallet transfer. US import tariffs and fiscal deficits may be impacting investor sentiment. Large dormant wallet movements are not uncommon, and the recent 80,009 BTC transfer may not indicate an immediate sale.

Concerns over a potential sale from the wallet are valid, but moving large amounts at once could decrease the likelihood of an immediate sale. Large wallet transfers often trigger FUD, leading to short-term price pressure. Past movements of dormant wallets have not historically correlated with long-term trend reversals.

Bitcoin’s recent weakness may be due to mounting macroeconomic concerns. Bank of America Global Research advised investors to reduce exposure if the S&P 500 approaches 6,300. The US government’s approval of a $3.4 trillion fiscal package may dampen demand for long-term government bonds, potentially affecting broader risk markets, including Bitcoin.

The Trump administration’s economic uncertainty, particularly regarding trade deals and unilateral tariff rates, may be a more convincing explanation for Bitcoin’s inability to hold the $110,000 level. This broader macroeconomic context, rather than specific crypto-related factors, could be influencing Bitcoin’s current price movements.

Read more at Cointelegraph: Is Bitcoin’s Sell-off Driven By Dormant BTC Wallet Activity?