What happened?
Bitcoin’s price fell by 2.56% over the past 24 hours, dropping below $114,500 temporarily during early trading hours in Asia on Friday. Currently, Bitcoin is trading at $115.7K according to CoinMarketCap, after sliding down from its record high of over $123,000 on July 14. Renewed tariffs from the White House on Asian markets contributed to this decrease in price.
Who does this affect?
This affects Bitcoin investors, particularly those who entered the market recently or anticipated further price increases. Institutional investors seem to be holding their positions steady, although there was a notable large-scale BTC sale by Galaxy Digital. Additionally, new cohorts of whales who acquired BTC in the last 155 days have been significant sellers, impacting the market dynamics.
Why does this matter?
The recent dip highlights Bitcoin’s sensitivity to macroeconomic factors and profit-taking trends, especially by newer market participants. Market stability, coupled with diminishing US investor appetite, might lead to a short-term period of sideways trading. However, there is potential for growth if inflation expectations increase or institutional investments rise, which could push Bitcoin towards a new all-time high.