Bitcoin investors faced a turbulent Friday as the cryptocurrency dipped 2.56% to $114,500, marking the third major profit-taking event of this bull cycle. This sudden drop comes amid growing concerns about U.S. tariffs and shows how sensitive crypto markets remain to macroeconomic factors.
Why is Bitcoin’s price dropping?
Three key factors are driving Bitcoin’s recent decline:
- Profit-taking by whales: New large investors who bought Bitcoin within the last 155 days are cashing out
- Tariff fears: Renewed concerns about U.S. trade policies with Asia
- Market cycle: This matches historical patterns of consolidation after major rallies
Bitcoin market analysis: What the data shows
According to CryptoQuant, realized profits reached $6-$8 billion in late July, matching previous peaks. The selling pressure comes primarily from:
| Investor Type | Impact |
|---|---|
| New whales | Major selling pressure |
| Institutions | Most holding positions |
| Retail traders | Mixed reactions |
What’s next for Bitcoin’s price?
Analysts predict Bitcoin may remain range-bound for 2-4 months based on historical patterns. However, two potential catalysts could change this:
- Renewed institutional inflows
- Rising inflation expectations
Bitcoin news: Expert outlook remains cautiously optimistic
While the current dip concerns some investors, market stability at these levels suggests strong underlying support. James Toledano of Unity Wallet notes that Bitcoin could attempt new highs later this year if macroeconomic conditions improve.
Frequently Asked Questions
How much has Bitcoin dropped recently?
Bitcoin fell 2.56% to $114,500 at its lowest point on Friday before rebounding slightly.
Who is selling Bitcoin right now?
Primarily new whale investors who bought within the last 155 days, according to on-chain data.
Is this a good time to buy Bitcoin?
Market conditions suggest potential for further consolidation, so dollar-cost averaging may be preferable to large lump-sum investments.
How long will this correction last?
Historical patterns suggest 2-4 months of consolidation before the next major move.
