why is bitcoin dropping

Bitcoin's recent drop is mainly due to a surge in liquidations where exchanges close loss-making leveraged trades to protect their capital, causing more selling pressure. Additionally, US inflation remained elevated in July, keeping macroeconomic concerns high and impacting investor sentiment negatively. Bitcoin also formed a risky falling wedge bearish pattern on technical charts, raising fears of further declines and a potential bear market. Larger investors, or whales, have been net sellers, while retail traders have been buying dips, creating a dynamic that keeps the price pressured downward. The traditional four-year bitcoin price cycle seems to be breaking, disrupted by changes like the introduction of Bitcoin ETFs and evolving market behavior, which adds to the uncertainty in price trends. Furthermore, remarks from the Federal Reserve Chair and overall cautious macroeconomic conditions have contributed to the downward movement in Bitcoin's price recently.