Bitcoin News Today: Bitcoin Plummets 2.6% in Volatile Macro-Driven Selloff

Bitcoin remains at the center of economic and financial speculation, as it navigates a complex environment marked by macroeconomic uncertainties and shifting monetary policy expectations. Recent volatility has seen the cryptocurrency fall to around $114,000 after a rapid decline of $3,000 in a single day, raising concerns about its stability and future trajectory [1]. Analysts have noted that the market appears to be in a downward or sideways trend, with the broader cryptocurrency landscape showing signs of increased pressure from global economic factors.

The decline has been attributed to several macroeconomic signals, including stronger-than-expected U.S. producer inflation data, which rose 3.3% in the latest report, surpassing the projected 2.5%. Combined with cooling labor market indicators, these developments have created a challenging backdrop for risk assets, particularly cryptocurrencies. The Federal Reserve faces a difficult balancing act, as easing interest rates could stimulate the job market but risk further inflationary pressures [2]. Additionally, the implementation of heightened tariff rates in August has intensified concerns about future inflation, with similar impacts potentially reflected in September figures.

This week’s economic calendar includes key events that could further impact Bitcoin’s price. The Jackson Hole symposium, followed by the release of Federal Reserve minutes and a speech by Fed Chairman Jerome Powell, has added to the market's risk-averse sentiment. Investors are closely watching these developments, as they could signal the central bank’s stance on inflation and employment, with subsequent effects on capital flows into the crypto market.

While some analysts remain bullish, others have issued cautionary notes. VanEck, a prominent asset management firm, has set an ambitious price target of $180,000 for Bitcoin in the near term, reinforcing positive sentiment among investors [3]. Bernstein analysts have also extended their expectations, projecting that the crypto bull market could last until 2027, with Bitcoin potentially reaching between $150,000 and $200,000 by the end of next year. These forecasts are supported by expectations of a Federal Reserve rate cut in September 2025, which markets currently price at a 92% probability [4].

However, recent price behavior has highlighted the market’s fragility. After hitting a new all-time high, Bitcoin quickly retraced to previous levels, raising concerns about the sustainability of its rally. Some reports suggest a potential price crash could bring Bitcoin back down to $115,000 after a recovery phase [5]. These fluctuations underscore the speculative nature of the crypto market and the potential for sharp corrections following rapid gains.

Despite these risks, Bitcoin continues to attract investors seeking alternatives to traditional financial systems, particularly in times of economic uncertainty. Some market participants view it as a hedge against inflation and centralized monetary policies. Yet, the long-term projections for Bitcoin remain speculative, with forecasts such as Changelly’s $6,063,271 price target by 2040 lacking immediate empirical support [6].

In conclusion, Bitcoin’s ability to overcome new economic hurdles will depend on a variety of interrelated factors, including regulatory developments, institutional adoption, and the broader global economic climate. While bullish forecasts persist, the market remains highly volatile and subject to rapid shifts in sentiment. Investors must remain vigilant and strategic as they navigate this evolving landscape.

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Sources:

[1] https://coinmarketcap.com/community/articles/68a48f13db9cb512e8f45699/

[2] https://www.mitrade.com/insights/news/live-news/article-3-1051278-20250819

[3] https://www.mitrade.com/insights/news/live-news/article-3-1048216-20250818

[4] https://www.msn.com/en-us/money/markets/scaramucci-says-us-will-solve-debt-crisis-bitcoin-will-triple-and-claims-this-candidate-has-better-economic-plan/ar-AA1tdWLy

[5] https://www.newsbtc.com/news/bitcoin/bitcoin-price-crash-to-115000/

[6] https://changelly.com/blog/bitcoin-price-prediction/