Bitcoin Today: Why the $115K Dip Matters and What’s Next
Author: A.F Financial expert
Crypto expert
On August 1, 2025, Bitcoin plunged below $115,000, wiping out much of its gains from July. The primary triggers: newly announced U.S. tariffs and a sharp wave of profit‑taking among traders. This slump is a reminder: even in a bull run, macroeconomic shocks can quickly reverse momentum.
What Caused This Market Shake‑Up?
Macroeconomic Surge & Tariff Headwinds
New tariffs imposed by the U.S. government rattled investor confidence. Bitcoin dropped ~3.2% to $114,832, while other major altcoins like Ether and Solana tumbled up to 9.5%. Traders shifted to safer assets as risk sentiment spiked across crypto and equity markets.
Seasonality & Technical Resistance
August has historically been a volatile month for Bitcoin, often showing price pullbacks after strong July runs. Technical resistance near $122K collided with profit-taking, creating pressure toward lower support at $112K.
Miners Dumping for Profits
Data shows miners increased asset accumulation in July but have now begun selling to secure gains, adding supply and amplifying downward momentum. Bitcoin is currently trading between support at $116,900 and resistance at $120,800.
Longer-Term Drivers & Bullish Outlook
Institutional Adoption & Strategic Bitcoin Reserves
Bitcoin is increasingly becoming a mainstream financial asset. In early 2025, President Trump signed executive orders establishing a U.S. Strategic Bitcoin Reserve, positioning Bitcoin alongside traditional national assets like gold and oil. States like Texas have followed suit by legislating state-level strategic reserves.
Corporate Treasuries Embrace Bitcoin
Over 135 public companies now hold Bitcoin on their balance sheets. A standout example: MicroStrategy, which holds over 628,000 BTC, driving a recent earnings beat and buoying investor sentiment about Bitcoin’s legitimacy as a treasury asset.
ETF Inflows and Market Liquidity
Net inflows into Bitcoin ETFs surpassed $14 billion in 2025 alone. Meanwhile, analyst forecasts—like Scaramucci’s—predict Bitcoin could hit $200,000 by year‑end, potentially becoming a $15–20 trillion asset class.
What Beginners Should Watch – Key Levels & Scenarios
Support & Resistance Zones
- Support: $115,000–$116,000. If broken, the next critical support is near $112,000. A breach could lead to further declines toward $114,300.
- Resistance: $120,800–$122,000. Overcoming this could reignite the bull run.
Institutional Flows vs. Miner Sell‑Offs
The tug-of-war between profit-taking miners and long-term accumulation by institutions will shape near-term direction.
Macro & Regulatory Outlook
Watch for talks, reports, and policy updates from U.S. regulators, especially around the GENIUS Act and crypto‑oriented legislation. Regulatory clarity tends to fuel institutional inflows—and momentum.
Disclaimer
The content provided is for informational purposes only and does not constitute investment advice. Bitcoin and cryptocurrency prices are volatile. Always conduct your own research and consult a licensed financial advisor before making any investment decisions.
Risk Note
Cryptocurrencies like Bitcoin are highly speculative. Price fluctuations may result in losses. Never invest more than you can afford to lose.
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Key Takeaways (highlight in blog):
- Bitcoin crashed under $115K on August 1, 2025, due to U.S. tariffs and profit‑taking.
- Key support is around $112K; resistance lies at $122K.
- Miners are selling; institutions are buying.
- Strategic Bitcoin reserves and ETF inflows are strengthening long-term bullish momentum.
- Focus on low-competition keywords tied to U.S. events for faster blog ranking.
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