Bitcoin Falls as 'Fear' Takes Over Investors; Ethereum, Dogecoin, XRP, SOL Slide; Analyst Predicts More Dips, Bullish September Ahead

Bitcoin falls 2.84% to $113,153.74, while Ethereum, XRP, SOL, and Dogecoin drop 5.54%, 6.43%, 4.03%, and 6.30%, respectively. "Fear" sentiment dominates the market, with institutional investors selling Bitcoin. Analysts predict a potential drop in Bitcoin below $112,000 and Ethereum below $4100, but expect a bullish September.

Bitcoin experienced a significant drop, falling 2.84% to $113,153.74, while Ethereum, XRP, SOL, and Dogecoin also recorded notable declines of 5.54%, 6.43%, 4.03%, and 6.30%, respectively, on July 2, 2025. The market sentiment has shifted towards "fear," with institutional investors selling Bitcoin, according to the Bitcoin Fear and Greed Index [3].

The Bitcoin Fear and Greed Index, which measures market sentiment, plummeted below 10 in April 2025, indicating extreme fear [3]. This sentiment shift is attributed to regulatory uncertainties, macroeconomic pressures, and geopolitical tensions. Despite Bitcoin's price hovering around the $80,000-$85,000 range, investor psychology has turned bearish, leading to a sell-off. Analysts predict a potential drop in Bitcoin below $112,000 and Ethereum below $4,100, but they expect a bullish September.

The recent decline in Bitcoin and Ethereum prices can be attributed to several factors. Shifting investor sentiment, macroeconomic pressures, profit-taking, and leveraged position liquidations have all contributed to the price drop [1]. The Federal Reserve's upcoming Jackson Hole Economic Symposium, where Federal Reserve Chair Jerome Powell is expected to speak, is also a significant factor driving market volatility [2].

Analysts advise against panic selling and emphasize the importance of diversified portfolios and long-term strategies to manage the inherent risks of cryptocurrencies [1]. Some market participants view the dip as a potential buying opportunity, but caution is urged due to Bitcoin's unpredictable nature and potential for further declines [1].

The recent price movements serve as a reminder of the dynamic nature of the cryptocurrency market. While unsettling, such price movements also present opportunities for those equipped with a well-informed and adaptable approach. Long-term success in Bitcoin trading often hinges on patience, continuous learning, and a clear understanding of market cycles [1].

References:
[1] https://www.ainvest.com/news/bitcoin-news-today-bitcoin-price-dips-117-000-volatility-profit-2508/
[2] https://www.fxstreet.com/cryptocurrencies/news/ethereum-price-forecast-eth-plunges-below-4-200-as-investors-brace-for-powells-speech-202508192015
[3] https://www.gate.com/crypto-wiki/article/bitcoin-fear-and-greed-index-market-sentiment-analysis-for-2025