Bitcoin has dropped nearly 5% from its all-time high to $116,880 as the broader crypto market pauses. Ethereum is also down 2.5% to around $2,980. Analysts attribute the dip to a correction after a rapid run-up and uncertainty around U.S. inflation data. Whale behavior and ETF flows are key variables to watch.

On-chain data shows large Bitcoin holders are repositioning, with over 1,800 BTC deposited onto Binance in a day. Whale inflows suggest profit-taking or hedging against downside risk ahead of CPI data. Bitfinex analysts cite exhaustion from the recent rally and caution before U.S. inflation figures.

A potential delay in Federal Reserve easing due to high core inflation could strengthen the dollar and put pressure on risk assets like Bitcoin. However, a softer-than-expected print could revive bullish momentum. Altcoin markets are also under pressure, with Ethereum’s range in Q3 dependent on DeFi activity and ETF momentum.

Whale behavior, ETF flows, and inflation data will determine the next move for Bitcoin and the rest of the crypto market. Market experts emphasize the importance of these factors in influencing interest rate expectations. Whale behavior and ETF flows will also remain crucial variables to monitor.

Read more at Yahoo Finance: What On-Chain Data Reveals About The Next Big Price Shift