The price of Bitcoin started the weekend—and the new month—in the worst possible way after falling below the $115,000 mark on Friday, August 1. This price decline seems to be worsening, as the premier cryptocurrency now sits beneath the $113,000 level following United States President Donald Trump’s recent nuclear threat.
Data from CryptoQuant shows that Binance registered over $7.6 billion daily BTC spot volume, marking one of the most significant increases in recent weeks. However, this notable spike in trading activity coincided with a dip in Bitcoin’s price from above $118,000 to around $113,000, signaling increased volatility and trader repositioning.
In the macroeconomic context, Taha highlighted that the US Federal Reserve’s net liquidity also witnessed a significant increase on Friday, jumping from $6 trillion to $6.17 trillion. For more context, net liquidity is typically considered a significant macro driver for risk assets like Bitcoin.
As such, a net liquidity spike implies more fiat money is circulating in the financial system, which can flow into equities, cryptocurrencies, and other risk-on assets. Hence, increases in the Fed’s net liquidity have historically coincided with bullish shifts across markets, as seen during late 2023 and early 2024.
As of this writing, the price of BTC stands at around $112,600, reflecting an over 1% decline in the past 24 hours.
