Bitcoin’s (CRYPTO: BTC) months-long range-bound trading, and a 12% pullback that’s keeping it from reclaiming $100,000, has traders digging into what’s driving the weakness.

What Happened: Pseudonymous macro researcher Capital Flows elaborated in a detailed X thread that three key macro forces are behind Bitcoin’s drawdown:

Bitcoin is acting as a risk-asset release valve: BTC remains highly sensitive to shifts in risk appetite. While it typically tracks equities, it has recently diverged because it responds more quickly to changes in macro liquidity and the broader risk curve.

Real interest rates now dominate price action: despite Fed rate cuts, what truly matters is net liquidity…. Read more on Benzinga