Bitcoin Pullback: Why BTC Is Dropping and What to Expect This Week (August 2025)
- Why Is Bitcoin Dropping? The 3 Key Reasons
- This Week’s Bitcoin Scenarios: Bull, Bear, or Sideways?
- FAQ: Your Bitcoin Pullback Questions Answered
Bitcoin’s recent dip from its all-time high of $124,000 to around $115,000 has investors on edge. A mix of shaky global economics, geopolitical tensions, and regulatory scrutiny is fueling the decline. This week could see BTC rebound if inflation cools—or plummet further if the Fed stays hawkish. Here’s the full breakdown, with targets from TradingView charts and insights from the BTCC research team.
Why Is Bitcoin Dropping? The 3 Key Reasons
Bitcoin’s 7% slide isn’t just a blip—it’s a cocktail of macro and market forces. Let’s unpack them:
1. The Fed’s Rate Drama Is Back
Remember July’s optimism? Traders bet the Fed WOULD cut rates as inflation eased. Then August’s PPI print hit 0.9%—way above forecasts. Cue the panic:data shows 70% of traders now expect rates to stay high through fall. Higher for longer = less appetite for risky assets like BTC. Simple math.
2. Geopolitics and Regulation Are Stirring the Pot
Washington vs. Beijing trade wars, EU crypto surveillance plans, and SEC side-eyeing bitcoin ETFs—it’s a minefield. As one analyst (who asked to remain anonymous) put it: “BTC’s institutional now, but regulators still hold the leash.” Even minor rumors trigger 5% swings overnight.
3. Whales Are Taking Profits
After the 2025 rally to $124K, big players started cashing out. August’s thin liquidity amplifies every sell order. Historically, it’s a sleepy month—but this year, it’s more like a bear trap.
This Week’s Bitcoin Scenarios: Bull, Bear, or Sideways?
Three paths could play out:
Bull Case: $120K Retest
If this week’s inflation data surprises to the downside, BTC could sprint back toward $120K. Fed doves or ETF inflows would help. The BTCC team notes: “The $110K–$112K support zone held strong last week—that’s the line in the sand.”
Bear Case: $98K Flush
Persistent inflation + Fed tough talk = trouble. A confirmed breakdown (see chart below) could drag BTC to $105K–$108K. Worst case? Derivative liquidations spark a cascade toward $98K. Not pretty.
Sideways: The Waiting Game
No clear catalyst? Expect choppy consolidation between $110K–$117K. As one trader joked: “August’s motto: ‘Wake me up when September ends.’”
FAQ: Your Bitcoin Pullback Questions Answered
How low could Bitcoin go?
Key levels to watch: $110K (support), $105K (demand zone), and $98K (psychological floor). Below that? Let’s not jinx it.
Should I buy the dip?
This article does not constitute investment advice. But historically, BTC dips under $112K have been bought aggressively within 2 weeks.
Are ETFs still a factor?
Absolutely. Despite SEC noise, Bitcoin ETFs hold 4.2% of circulating supply. Their flows move markets.
