Bitcoin is back in choppy waters once more. The top cryptocurrency has fallen below the $115,000 barrier, wiping out over $400 million in long positions to waste and dragging sentiment in the remainder of the crypto market with it. Bitcoin stands at $114,881, 2.63% down, having chopped off more than $100 billion from the total market cap.
Bitcoin Plunges to $115K, Triggering $300M in Liquidations; MetaPlanet and MicroStrategy Buy the Dip pic.twitter.com/rvaOfpb7G1
— (@Karman_1s) August 18, 2025
Macro Forces Ratchet Up Pressure
The sell-off follows the heels of searing U.S. inflation prints that dashed expectations for near-term Federal Reserve interest rate cuts. Higher-yielding assets, such as risk assets, have had impetus stripped from them by a strengthening U.S. dollar, leaving cryptocurrencies vulnerable.
For investors, the time is no longer about blockchain fundamentals, but about the global economic landscape. Stocks, bonds, and commodities alike are reacting to the same squeeze, forcing portfolios to rebalance and, for most, relegating Bitcoin to a secondary position.
Chart analysts point to a rising wedge pattern, which has now broken to the downside — a bearish technical sign that has investors ready for more volatility. Market specialists point to $112,000 as an important line of support. If that level is crossed, the next stop could be around $105,000.
Short-term speculators already are unwinding leverage and cutting back exposure. What others used to view as a setup for one more rally now seems to be a technical drag set to deepen the correction.
Institutions Demonstrate Steadier Hands
Though retail traders are bitten, institutional investors are more optimistic. Asset manager VanEck is sticking to its year-end forecast of $180,000 per Bitcoin, citing steady inflows into spot ETFs and corporate treasury buying.
Year to date, ETFs of Bitcoin ETFs have received nearly $55 billion, highlighting the appetite from traditional finance. Simultaneously, MicroStrategy has also continued adding to its enormous heap, with more than 3.67 million BTC in its coffers, supporting the hypothesis that among scale buyers.
This imbalance — short-term frenzy among speculators and long-term confidence from institutions — is defining the current crypto cycle.
Why the Dip Matters
The sub-$115K slide highlights the dual character of Bitcoin. On the one hand, it remains vulnerable to macroeconomic fluctuations and technical stress. On the other hand, whales continue to view dips as buying dips, hence more a contender for “digital gold.”.
For day traders, it is a reminder that market volatility can be merciless. For beginners, it is a reminder that cryptos flip in a hurry even in the presence of growing mainstream acceptance.
Institutions stay calm as retail traders reel — VanEck holds firm on its $180K Bitcoin target, backed by ETF inflows and corporate buys ( Image Source: International Business Times )
The Psychology of Thresholds
Numbers don’t only tally up in markets as figures but as psychological touchstones as well. The $115K level was a myth of support for so many traders. Shattering it unleashed the floodgates of robot sell orders and liquidations, accelerating the fall.
The episode also uncovered the risks of high leverage. In a high-risk market like crypto, even a modest 2–3% move can cover over-leveraged positions. Some investors have viewed this as a chance to accumulate quietly, while others are nursing wounds.
The Next Test
Everyone’s eyes are on $112,000 now. If Bitcoin maintains this level, the market could rebound to $120K. Failure, then, could see prices slide down to $105K, resulting in another wave of liquidations and market anxiety.
Technical levels aside, the question remains out there: is Bitcoin becoming a hedge against inflation, or is it still behaving like a speculative asset caught between crossfires of global policy shifts?
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A Drama-Packed Market
Volatility has always been Bitcoin’s hallmark. This latest fall is not an exception but rather follows a pattern that keeps both the asset and asset class respected and feared. It remains one of the most closely watched and emotionally charged instruments of global capital markets.
Whether this adjustment is a speed bump to higher highs or the start of a deeper retracement, Bitcoin’s ability to captivate traders, investors, and institutions alike continues unabated. Its duality — as a risky asset and a long-term store of value, is again at the forefront.
