Bitcoin News Today: Bitcoin drops nearly 6% amid inflation concerns and Fed rate cut doubts

Bitcoin briefly slid below $117,000 in late August 2025, reaching a low of $116,930 amid intensified selling pressure, marking one of the sharpest corrections of the month following a recent peak near $124,000 [1]. The decline, which represented nearly a 6% drop from the high, was attributed to broader market sell-offs and renewed concerns over U.S. inflation data [2]. Additionally, fading hopes for aggressive Federal Reserve rate cuts contributed to a cautious tone among investors, further fueling the downward trend [3].

The pullback coincided with a notable shift in investor behavior, as capital began to rotate into altcoins. The crypto sentiment index rose sharply from 0.23 to 0.91 within a week, signaling growing interest in alternative cryptocurrencies [4]. Increased Google search volumes for Ethereum and other digital assets reflected a broader curiosity about options beyond Bitcoin [4]. This development suggested a temporary waning of Bitcoin’s dominance in the market.

Bitcoin briefly dipped below $117,000 on August 17, triggering concerns among market participants about potential further declines. Analysts noted that a break below the $115,000 level could lead to a deeper correction toward $112,526. While the price steadied near $118,000 in the days prior, warnings from experts like Lark Davis and Michaël van de Poppe indicated that deeper pullbacks were possible [5].

Despite the sharp drop, Bitcoin managed to hold above $117,000 by late August, showing some resilience amid ongoing macroeconomic uncertainty [6]. However, some analysts, particularly those from Mitrade, warned that Bitcoin could be entering a corrective wave, with the price potentially falling as low as $77,000 if bearish conditions persist [7]. These forecasts, while speculative, highlight the increased volatility and cautious outlook currently shaping the market.

The broader economic context, including mixed signals from recent data and fluctuating investor sentiment, remains a key influence on Bitcoin’s trajectory. As market participants continue to assess the implications of macroeconomic developments, the next move in Bitcoin’s price will be closely monitored for signs of stabilization or further downward momentum.