Bitcoin Falls to 12-Week Low as Fed Rate Fears Erase Summer Rally

The retreat matters less for the headline low than for what is driving it: macro conditions, not crypto-native catalysts, are setting the tone. Persistent inflation and renewed rate-hike expectations tighten the liquidity that supported the summer move, and ETF outflows suggest some holders are repositioning rather than adding. That combination puts the focus on whether ETF flows stabilize once the rate picture clarifies, and whether bitcoin can hold the August range as a floor. How much of the summer rally was macro-driven versus crypto-specific is the question this drawdown begins to answer.