Bitcoin Today 18/08/2025: BTC Drops Amid US Inflation Data and Failed Trump-Putin Summit
- Why Did Bitcoin Drop Today?
- IMF Warns Against Bitcoin Adoption in Central African Republic
- Technical Analysis: Where’s BTC Headed Next?
- Geopolitics and Crypto: The Trump-Putin Factor
- FAQ: Your Bitcoin Market Questions Answered
Bitcoin (BTC) faced downward pressure on August 18, 2025, as investors reacted to hotter-than-expected US inflation figures and geopolitical tensions following the collapse of high-stakes talks between former US President Donald Trump and Russian leader Vladimir Putin. The BTC price dipped below $35,000, erasing gains from earlier in the week. Meanwhile, the IMF reiterated concerns about Bitcoin adoption in the Central African Republic, adding to market uncertainty. Here’s a deep dive into the factors driving Bitcoin’s volatility and what it means for traders.
Why Did Bitcoin Drop Today?
The primary catalyst for Bitcoin’s decline was the US Consumer Price Index (CPI) report, which showed inflation rising to 3.2% year-over-year—above the Federal Reserve’s target. Higher inflation reduces the appeal of risk assets like Bitcoin, as investors anticipate tighter monetary policy. "The market was pricing in a rate cut by Q4, but this data throws cold water on that optimism," noted a BTCC analyst. The failed Trump-Putin summit further dampened sentiment, as hopes for de-escalation in Eastern Europe faded.
IMF Warns Against Bitcoin Adoption in Central African Republic
The International Monetary Fund (IMF) doubled down on its criticism of the Central African Republic’s bitcoin legal tender law, calling it "a risky experiment" that could destabilize the nation’s economy. The country adopted BTC in 2023, but poor infrastructure and regulatory gaps have led to minimal usage. "Without proper safeguards, crypto adoption can exacerbate financial exclusion," argued the IMF in its latest report. This echoes similar warnings from 2022, when El Salvador’s Bitcoin move drew scrutiny.
Technical Analysis: Where’s BTC Headed Next?
According to TradingView data, Bitcoin breached a key support level at $35,200, with the next major floor at $33,800. The RSI (Relative Strength Index) sits at 42—neither oversold nor overbought—suggesting room for further downside. "Traders are watching the $34,000 zone closely. A breakdown could trigger stop-losses and accelerate selling," said a BTCC market strategist. On-chain metrics from CoinMarketCap show exchange reserves rising, indicating potential sell pressure.
Geopolitics and Crypto: The Trump-Putin Factor
The much-hyped meeting between TRUMP and Putin in Reykjavik ended without progress on Ukraine, sending safe-haven flows to the US dollar. Historically, Bitcoin has struggled during dollar strength. "Geopolitical risks usually boost crypto, but this time, traditional safe havens won," observed a Bloomberg analyst. The summit’s failure also reignited concerns about energy markets, as Russia threatened to cut natural gas supplies to Europe—a key factor for Bitcoin mining costs.
FAQ: Your Bitcoin Market Questions Answered
What caused Bitcoin’s price drop on August 18, 2025?
Bitcoin fell due to strong US inflation data and the collapse of Trump-Putin talks, which boosted the US dollar and risk-off sentiment.
Is the Central African Republic’s Bitcoin experiment failing?
The IMF warns of challenges, but it’s too early to declare failure. Adoption remains low due to infrastructure hurdles.
Should I buy the Bitcoin dip?
This article does not constitute investment advice. Always conduct your own research and consider risk tolerance.
