The hottest month of the year also saw some of the hottest climbs for the largest digital asset, which reached unseen territories driven by global demand.The market is naturally cooling after a month of events, and speculation about the next direction is high. Here’s CryptoQuant’s take on why BTC dipped at the end of July.Potential TriggersThe month of July, which marked the second half of the year, saw a spectacular BTC run that drove the asset to a new all-time high of just over $123,000. At the end of the month, however, bitcoin experienced a significant drop, losing 7-8% of its value and falling to a multi-week low of $112,000.Given that this ATH was a level not previously seen, it was natural for some profit-taking to occur, whether by institutions, investors, miners, or OG holders who decided to exit at this price range. A notable sell-off took place in the last few days of the month. Galaxy Digital disposed of 80,000 BTC for a client, valued at around $9 billion.While it was a strong month for BTC Exchange-traded funds (ETFs), with only 4 days marking outflows, anything that goes up must come down, right? On July 31st and August 1st, over $920 million left ETFs, according to data from SoSoValue. The following graph, shared by CryptoQuant, is a good visualization of the sharp decline.Source: CryptoQuant“ETF inflows were intermittent and not stable during periods when funds were withdrawn from ETFs. There was no alternative demand to compensate for this shortfall,” was noted by the blockchain page ArabxChain.The macroeconomic scene also did not help much, with the most recent Federal Reserve meeting from last week, despite the US economy posting a 3% increase. President Trump used this opportunity to urge Fed Chair Jerome Powell to cut rates, but they remained unchanged.Future OutlookThe crypto asset with the largest market capitalization experienced a few wobbly days and appears to be still recovering from them, with overall market santiment split between bearish and bullish.The most recent liquidation heatmap from Coinglass indicates strong investor confidence that Bitcoin will regain its previous levels, with a significant cluster of positions centered around the $120,000 mark.Source: CoinglassMichaël van de Poppe noted on X that “Bitcoin is doing great,” but also emphasized the possibility that BTC is not entirely out of the woods yet.“Rejection here? Yes, that would mean we’re retesting the area around $110-112K.”The author and advocate of BTC, Robert Kiyosaki, is still leaning toward a more bearish stance, citing historically low August levels. Although he will not shy away from buying the dip, should it happen.The post End-of-July Bitcoin Dip Explained: What Triggered It? (CryptoQuant) appeared first on CryptoPotato.