Bitcoin News Today: Bitcoin Holds Above $116,600 as Altcoin Market Dips 10% Amid Regulatory and Macro Uncertainty

Bitcoin's recent price action has drawn attention as it moves above the $116,600 level, with traders and analysts closely monitoring whether this marks a sustained rally or a temporary bounce [1]. The rise has been attributed to geopolitical developments and speculation around potential outcomes of discussions involving U.S. President Trump, the European Union, and Ukrainian President Zelenski [1]. These discussions, while not yet yielding concrete results, have influenced market sentiment and investor behavior in the crypto space.

However, the altcoin market has shown signs of strain amid Bitcoin’s climb. The overall altcoin market has recently retreated by nearly 10%, with DaanCrypto noting that the 0.382 Fibonacci Retracement level has become a critical threshold [1]. This level represents a traditional indicator for potential trend reversals and is currently under pressure following a recent rally. If bulls fail to hold this level, the market could face further declines.

The broader economic environment also plays a significant role in shaping altcoin performance. The Jackson Hole symposium and Federal Reserve minutes are expected to provide key insights into future monetary policy, which will likely influence risk markets and investor sentiment [1]. Inflationary pressures and ongoing tariff discussions have already contributed to a negative trend in risk assets, and the cryptocurrency market is no exception. This is particularly true for altcoins, which are more sensitive to macroeconomic shifts than Bitcoin.

The U.S. Securities and Exchange Commission’s (SEC) delay in making decisions on ETF applications for cryptocurrencies like Solana and XRP has also added to market uncertainty. Regulatory clarity is often a catalyst for market confidence, and the absence of it has left traders cautious [1]. DaanCrypto emphasized that while there is no immediate cause for alarm, clearer direction may emerge after key geopolitical and regulatory updates.

SOL Coin has emerged as one of the more watched altcoins amid Bitcoin’s rise. Analysts like Martinez have suggested that SOL Coin could reach $160, but recent movements have shown signs of weakness, with the token closing below $189 [1]. A sustained drop below $175 could disrupt the upward trajectory that had been forming earlier in the year. Solana’s performance is now dependent on whether it can stabilize and reestablish a clear trend.

Market observers remain divided on the broader outlook. Michael Poppe has expressed optimism about a potential recovery if Bitcoin continues to close above $117,000 [1]. This would indicate a strengthening trend and could lead to renewed interest in altcoins. The anticipated outcome of a White House summit and a reported $100 billion arms deal to support Ukraine could also impact market sentiment in the coming weeks.

Despite the volatility, some analysts argue that altcoins may still benefit from a Bitcoin-driven market rotation. Historical patterns show that altcoins tend to rally when Bitcoin stabilizes and market conditions improve [5]. XRP, Cardano, and Solana have been identified as potential beneficiaries of such a rotation, with certain strategies pointing to liquidity and market structure as key indicators for rebounds [5].

However, the divergence between Bitcoin and corporate Bitcoin holdings has raised questions about the sustainability of current market dynamics. Strategy Inc., a major corporate holder of Bitcoin, has underperformed the digital asset it holds, highlighting a broader disconnect [6]. This has led to discussions about whether traditional corporate strategies can keep pace with the fast-moving crypto market.

Ethereum, as the second-largest cryptocurrency, remains a key indicator for the altcoin market. Technical analysis suggests a possible retest of the $3,900 support level before a potential 100% rally to new highs, assuming the asset can overcome resistance at $4,400 [7]. The outcome of this liquidity battle could determine whether altcoins follow a similar trajectory or continue to underperform Bitcoin.

Investors are also monitoring token unlock schedules, which can affect circulating supply and price stability. Coins like KAITO, MURA, and MOCA are facing increased supply pressures as new tokens enter the market [8]. This adds another layer of complexity to altcoin performance, particularly as traders assess fundamental value against tokenomics.

As Bitcoin continues to consolidate and test key support levels, the broader crypto market remains in a transitional phase. The coming weeks will likely determine whether Bitcoin can regain upward momentum or if the altcoin market faces further volatility. With macroeconomic conditions remaining uncertain, market participants are closely watching for signs of stabilization in both Bitcoin’s price and the broader crypto ecosystem.

Source:

[1] Bitcoin Steadies at $118K as Analysts Flag Deeper Pullback Risks and Altcoin Rotation

https://www.coindesk.com/markets/2025/08/17/bitcoin-steadies-at-usd118k-as-analysts-flag-deeper-pullback-risks-and-altcoin-rotation

[2] Bitcoin Tumbles 5 3 as Altcoins Struggle and Market Loses

https://www.ainvest.com/news/bitcoin-news-today-bitcoin-tumbles-5-3-altcoins-struggle-market-loses-119-billion-2508

[3] Bitcoin tests key 50-day EMA support as Ethereum, XRP

https://www.fxstreet.com/cryptocurrencies/news/crypto-today-bitcoin-ethereum-xrp-risk-further-losses-as-liquidations-cross-500-million-202508181127

[4] Bitcoin Slips Under $116000 While Cardano, Solana Lead

https://stocktwits.com/news-articles/markets/cryptocurrency/bitcoin-slips-under-116000-while-cardano-solana-lead-altcoin-selloff/chsO7iYRdQw

[5] Best Altcoins to Buy as Bitcoin Dips: XRP, SNORT, ADA

https://coincentral.com/best-altcoins-to-buy-as-bitcoin-dips-xrp-snort-ada-set-for-growth

[6] As Bitcoin strengthens, Strategy faces a test of relevance

https://crypto.news/bitcoin-strategy-inc-stock-premium-fades-2025

[7] ETH charts predict $3.9K retest, then a 100% rally to new highs

https://cointelegraph.com/news/eth-charts-predict-dollar3-9k-retest-then-a-100percent-rally-to-new-highs

[8] Altcoin Unlock Watch: KAITO, MURA, and MOCA face

https://cryptodnes.bg/en/altcoin-unlock-watch-kaito-mura-and-moca-face-supply-shifts/