Key Takeaways:
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Increasing US trade deficits, insider share sales and weak Chinese banks increased global investor’s caution.
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Whales and miners continue to sell Bitcoin, but macroeconomic weakness is still the dominant driver.
Bitcoin (BTC) fell to its lowest level of 50 days, below $ 108,000. The sharp decline captured traders from the guard and triggered $ 137 million in liquidation of geared bullish positions. The move came after a 1.2% withdrawal in the tech-heavy NASDAQ 100 index, driven by growing doubts about the sustainability of growth in artificial intelligence sector.
Market participants are now weighing whether Bitcoin’s downturn reflects wider macroeconomic pressure or is limited to cryptocurrency.
The investor’s caution was intensified after the United States reported a 22% increase in the trade deficit for July. Imports exceeded by $ 103.6 billion and expanded the gap more than economists had predicted. Reuters noted that trade “could be a major feature of economic growth in the third quarter.”
Larger Insider -Sales and Chinese Banks’ rising bad debt increased the risk
X uses Malone_wealth pointed out that the top 200 share subjects from managers, directors and larger shareholders last week were all sales, something he described as unprecedented in his lifetime. Insider activity is typically monitored through archives to the US Securities and Exchange Commission.
Prominent transactions included a scheduled sale of $ 961 million of Walmarts Jim C. Walton, $ 164 million from Snowflakes Frank Slootman, and $ 160 million from Amer Sports’ Dennis J. Wilson. Other major features came from Dutch Bros’ Travis Boersma to $ 81.5 million and Klaviyo’s Andrew Bialecki to $ 73.7 million.
Further concerns emerged from China after the country’s five largest lenders reported record -breaking margins and rising criminal acts, according to the Financial Times. Chinese retail banks disposed of $ 5.2 billion in poor debt over the first quarter, an eight times increase from one year earlier, based on figures from Banking Credit Asset Registration and Transfer Center.
AI -sector cares when NVIDIA and SMCI shares fall
The AI ​​sector has also become a growing source of turmoil. Nvidia (NVDA) allegedly revealed that 44% of its data center revenue came from only two clients. Despite strong quarterly results on Wednesday and third-quarter revenue instructions in line with expectations, NVDA shares fell 4.7% over two trading sessions.
Meanwhile, Super Micro Computer (SMCI) warned on Thursday that weaknesses in its financial reporting could undermine its ability to release results. The company of $ 25 billion, a key NVIDIA partner that delivers high-performance AI servers and data center infrastructure, so its share falls 5.1% on Friday.
Related: Bitcoin -Trend turning to $ 118K or another fall to $ 105K – which comes first?
Signs of risk aversion were also clear in the bond market. Demand for US Treasurys drove the 2-year dividend down to 3.62%, its lowest level in four months and well under 3.80% just a week earlier. Investors’ willingness to accept lower returns despite persistent inflation suggests a growing preference for security.
The recent Bitcoin sale of long-dead whales and steady miner outflow has added the negative tone. Still, the most important driving force for BTC’s latest decline remains the debilitating macroeconomic views, with many dealers choosing to reduce exposure ahead of Monday’s US national holiday.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and statements expressed here are the author’s alone and does not necessarily reflect or represent the views and opinions from Cointelegraph.