Bitcoin (BTC) On July 13, 2025, the all-time high (ATH) was $123,091, but it was throwing almost $9,000 as a result of market volatility. Data analytics platform Cryptoquant provided three unique reasons for the Bitcoin crash in late July.
Liquidity Inventory Collapse Signal Market Instability
According to updatethe price decline of Bitcoin at the end of July was a result of a discrepancy between low supply and low demand. In particular, buyers such as exchange-traded funds (ETFs) and large investors fell back, and there was no significant demand from other market participants.
This caused the liquidity inventory ratio to collapse as the volume of Bitcoin sold in July was the lowest in history.
To be clear, in normal market conditions, prices usually rise due to short supply of BTC. However, prices were in a hurry due to weak demand for mopping up low supply, which plummeted the price of nearly $9,000 for major cryptocurrencies.
Why Bitcoin fell at the end of July
“ETF inflows were intermittent and were not stable during the period when funds were withdrawn from the ETF. There was no alternative demand to compensate for this shortfall.” – @arabxchain pic.twitter.com/9t0kvfqre8
– cryptoquant.com (@cryptoquant_com) August 5, 2025
Furthermore, in July, ETF inflows were not stable due to alternating high flow and sudden droplets. Therefore, support from institutional buyers was not present to support price stability. This has contributed to a sharp drop in prices.
A big accumulation like Metaplanet However, we have resumed purchasing assets. On August 4, the company acquired 463 BTC for its holdings.
Robert Kiyosaki is predicting more Bitcoin plunge
A combination of these factors led to a massive price drop as the market experienced a small wave of sales. As of press time, Bitcoin trading volume increased by 13.63% to $559.6 billion. However, BTC has changed hands at $114,314.30, representing a 0.22% decline over the past 24 hours.
This means that in the past seven days, flagship crypto assets have dropped significantly by 3.92%, according to CoinMarketCap data.
Meanwhile, Robert Kiyosaki, author of “Rich Dad Poor Dad,” said Bitcoin could enter more in August. According to him, Bitcoin’s “curse” It’s likely to cause a crash, and he hopes it will pull out a low asset of $90,000 so that it will have the opportunity to double his investment.
