Bitcoin has taken a sharp dive below $115,200, sending shockwaves through the crypto market. The sudden drop comes as U.S. tariff announcements trigger a risk-off sentiment, leading to a 3.82% market-wide decline. Here’s what you need to know.
Why Did Bitcoin Drop Below $115,200?
The crypto market faced intense selling pressure after the U.S. government proposed new tariffs, causing investors to flee volatile assets. Key factors behind the drop include:
- Macroeconomic Uncertainty: Federal Reserve warnings on slowing growth added to investor anxiety.
- Leveraged Liquidations: Over $630 million in long positions were wiped out in 24 hours.
- Risk-Off Sentiment: Traders shifted capital away from crypto amid geopolitical tensions.
Crypto Market Dip: Major Altcoins Follow Bitcoin’s Decline
The sell-off wasn’t limited to Bitcoin—Ethereum, Solana, and Dogecoin also saw steep losses:
| Cryptocurrency | Price Drop |
|---|---|
| Ethereum (ETH) | 5.5% to $3,663 |
| Solana (SOL) | Over 6% decline |
| Dogecoin (DOGE) | Nearly 8% drop |
Will Bitcoin Recover? Analysts Weigh In
Despite the downturn, experts remain cautiously optimistic:
- Key Support Level: Vikram Subburaj of Giottus notes that $115,000 is a critical zone—holding it could signal a rebound.
- Institutional Demand: Parth Srivastava of 9Point Capital highlights strong ETF inflows ($21.85B) as a bullish indicator.
- Options Market Signals: A Put-Call Ratio of 0.65 suggests traders are betting on a recovery.
What’s Next for the Crypto Market?
Traders are watching U.S. trade policy and economic data closely. While short-term volatility persists, long-term confidence remains, especially with Tether’s $4.9B Q2 profit reinforcing stablecoin stability.
FAQs
Q: How much did Bitcoin drop?
A: Bitcoin fell below $115,200, contributing to a 3.82% crypto market dip.
Q: What caused the sell-off?
A: U.S. tariff announcements and macroeconomic fears triggered leveraged liquidations.
Q: Is Ethereum affected?
A: Yes, Ethereum dropped 5.5% but saw slight recovery due to ETF inflows.
Q: Will Bitcoin bounce back?
A: Analysts believe $115,000 is a key support level—holding it could lead to a rebound.
