Bitcoin (BTC) All-Time High and Subsequent Decline

Bitcoin (BTC) hit an all-time high (ATH) of $123,091 on July 13, 2025, but has since dropped nearly $9,000 due to market volatility. CryptoQuant, a data analytics platform, provided three unique reasons for the Bitcoin crash in late July.

Liquidity Inventory Collapse Signals Market Instability

According to the update, Bitcoin’s price decline at the end of July resulted from a mismatch between low supply and weak demand. Notably, buyers like exchange-traded funds (ETFs) and large investors pulled back, and there was no significant demand from other market participants to compensate.

This triggered a liquidity inventory ratio collapse, as the amount of Bitcoin available for sale in July hit a historic low.

In normal market conditions, a short BTC supply would typically lead to a price increase. However, weak demand failed to absorb the low supply, resulting in a significant price drop of nearly $9,000 for the leading cryptocurrency.

> Reasons for Bitcoin’s Decline at the End of July
> “ETF inflows were intermittent and not stable during periods when funds were withdrawn from ETFs.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.” – By @ArabxChain pic.twitter.com/9t0KVFqRe8
> — CryptoQuant.com (@cryptoquant_com) August 5, 2025

Additionally, ETF inflows were unstable in July, alternating between high flows and sudden drops. Consequently, institutional buyer support for price stability was nonexistent, contributing to the sharp price decline.

Large accumulators, like Metaplanet, have resumed their Bitcoin purchases. On August 4, the firm acquired 463 BTC for its holdings.

Robert Kiyosaki Predicts Further Bitcoin Plunge

These compounding factors caused a massive price drop once the market experienced even minor selling pressure. As of press time, Bitcoin’s trading volume is up by 13.63% to $55.96 billion. However, BTC is trading at $114,314.30, reflecting a 0.22% decline in the past 24 hours.

In the last seven days, the leading crypto asset has seen a notable decline of 3.92%, according to CoinMarketCap data.

Meanwhile, Robert Kiyosaki, author of “Rich Dad Poor Dad,” suggests that Bitcoin could plunge further in August. He believes Bitcoin’s “curse” might lead to a crash, hoping it drops as low as $90,000 to provide him with an opportunity to double his investment.