Bitcoin News Today: Bitcoin Falls Below 50-Day Average Amid Geopolitical Tensions and 2% Market Cap Drop

Bitcoin’s price dipped below its 50-day moving average in early August 2025, raising concerns among traders about a broader market correction. At press time, the world’s largest cryptocurrency was trading at $115,676, marking a 1.54% decline from previous levels. This downward movement came amid intensifying geopolitical tensions, particularly following the Trump-Putin summit in Alaska, which analysts believe triggered a wave of caution among investors [4]. The crypto market, which had seen significant gains over the prior week, saw its total market cap fall nearly 2% to $3.86 trillion, erasing much of its recent progress [5].

The decline was not isolated to Bitcoin. Major altcoins mirrored the downward trend, with Solana (SOL) leading the losses with a 5.64% drop, followed by Cardano (ADA), which fell over 5%. XRP, Dogecoin (DOGE), and Binance Coin (BNB) also experienced notable declines of 4%, 4.13%, and 3.04%, respectively. The only token to hold relatively steady was Ethereum (ETH), which dipped by just 0.28%. These movements suggest a broad-based pullback driven by macroeconomic and geopolitical uncertainties.

Analysts have pointed to technical indicators as signs of market exhaustion. Bitcoin’s RSI (Relative Strength Index) fell below the neutral level of 50, and its MACD (Moving Average Convergence Divergence) displayed early bearish signals. These readings reflect growing uncertainty among investors, particularly in light of shifting global dynamics. Mike Novogratz of Galaxy Digital emphasized that while Bitcoin reaching a million dollars would traditionally be seen as a success, it could instead be a sign of economic instability [5].

The recent selloff also coincided with a surge in liquidations, with over $1 billion lost in a 24-hour period. This highlights the amplified risks associated with leveraged positions in crypto derivatives, where even moderate price swings can lead to significant losses [4]. Analysts have warned that holding Bitcoin in a spot position without leverage could still result in drawdowns of 70% to 80%, underscoring the speculative nature of the market [3].

Beyond geopolitical tensions, macroeconomic factors are also shaping investor sentiment. Rising global oil supplies and increasing OPEC output have contributed to concerns about weak global demand, compounding fears of economic slowdowns [2]. These broader economic pressures appear to have spilled into the crypto space, where Bitcoin’s price action may now reflect both geopolitical and macroeconomic headwinds.

While Bitcoin and the Nasdaq 100 had previously moved in tandem, the recent dip in Bitcoin has led traders to reassess their exposure to both the crypto and equity markets [1]. As institutional adoption continues to grow, so too does the scrutiny around whether the market is entering a bubble phase. With the broader sentiment still cautious and volatility expected to persist, market participants are urged to remain vigilant and adapt to the evolving landscape.