Bitcoin News Today: Bitcoin Falls 3% Below $116K Amid Fed Policy and Tariff Pressures

Bitcoin's price dropped nearly 3% in early August, retrieving below $116,000 amid broader market pressures triggered by U.S. tariff proposals and the Federal Reserve's decision to maintain interest rates within a tight 4.25% to 4.5% range [1]. This move has reduced the appeal of high-risk assets such as cryptocurrencies, especially with U.S. job market data signaling economic resilience [2].

The selloff resulted in over $630 million in liquidations of leveraged long positions, representing one of the largest single-day profit-taking events recently [3]. Bitcoin's technical outlook has weakened following its failure to break through a key Fibonacci resistance level near $122,000, leading to a price decline to $114,250 — its lowest point since mid-June 2025 [5]. Analysts are now closely monitoring support levels between $112,000 and $110,000. If these thresholds break, further downward pressure may push the price as low as $106,000 [4].

The market correction has extended beyond Bitcoin, with ether (ETH) and XRP experiencing losses of over 5% and 6%, respectively [6]. The broader crypto market has seen capital inflows shrink from $62.4 billion to $59.3 billion over the 30 days ending August 1 [4], reflecting a historically weak pattern for the asset class during the month of August.

Regulatory uncertainty has further compounded downward pressure. The U.S. government's recent proposals for tighter oversight of digital assets have raised concerns over potential restrictions on trading and investment [4]. Although the intent is to improve consumer protection, the uncertainty discourages capital allocation in the sector.

Technical indicators suggest that Bitcoin could see a short-term bounce near major moving averages if it stabilizes above $115,000. However, broader macroeconomic trends, including slowing capital inflows and a Fed policy stance showing no near-term easing, continue to challenge market optimism [4].

Analysts remain divided on Bitcoin's near-term trajectory. One analyst's forecast suggests a potential sub-peak around $150,000 if the M2 money supply continues to decline, followed by a correction phase [3]. However, this remains speculative and depends on real-time macroeconomic developments and investor behavior.

Bitcoin currently consolidates near $115,000. A sustained move above $120,000 would be necessary to rebuild bullish momentum. Until then, the market remains cautious, with key economic data such as U.S. inflation and employment figures expected to play a decisive role in shaping sentiment [4].

Sources:

[1] Bitcoin Slides Below $115K As Tariff Shock Hits Markets (https://m.fastbull.com/news-detail/bitcoin-slides-below-115k-as-tariff-shock-hits-4338007_0)

[2] Bitcoin News Today: Bitcoin Fills July CME Gap at ... (https://www.ainvest.com/news/bitcoin-news-today-bitcoin-fills-july-cme-gap-114322-market-downturn-116000-resistance-focus-2508/)

[3] Bitcoin Isn't Crashing — You're Just Being Lied To (https://medium.com/@dipanshuchaudhry9/bitcoin-isnt-crashing-you-re-just-being-lied-to-e04018d671c0)

[4] Bitcoin Price Plummets Below $116000 Amidst Fed Rate ... (https://news.ssbcrack.com/bitcoin-price-plummets-below-116000-amidst-fed-rate-signals-and-regulatory-concerns/)

[5] Bitcoin Drops to $115K as Third Major Profit-Taking ... (https://cryptoadventure.com/asia-morning-briefing-bitcoin-drops-to-115k-as-third-major-profit-taking-new-tariff-tensions-add-pressure/)

[6] Crypto: A Weak Start to a Difficult Month (https://m.fastbull.com/news-detail/crypto-a-weak-start-to-a-difficult-month-4338008_0)