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Bitcoin (BTC) has staged a notable recovery, reclaiming the $116,000 level amid broader market optimism and positive regulatory developments [1]. The leading cryptocurrency rose 1.30% during the session, trading at approximately $115,560 [1]. This bounce follows a midweek slump, during which BTC dipped to an intraday low of $112,707 on Tuesday before regaining momentum on Wednesday [1].
The rally coincided with favorable macroeconomic news, including a $100 billion investment by
and strong corporate earnings, which spurred optimism across both stock and crypto markets [1]. Additionally, a new executive order from US President Donald Trump is expected to expand the inclusion of alternative assets, including , in 401(k) retirement accounts [1]. The directive instructs the Department of Labor to reevaluate how the Employee Retirement Income Security Act applies to assets such as real estate, private equity, and digital currencies [1]. This move is seen as a pivotal step in legitimizing Bitcoin as a long-term investment, with BlackRock's Larry Fink supporting the integration of private assets into retirement plans, citing their potential to enhance returns and provide stability during downturns [1].Tether CEO Paolo Ardoino has also voiced strong support for Bitcoin, describing it as “undefeatable” amid recent volatility [1]. Tether’s growing BTC holdings—nearly 80,000 coins valued at over $9 billion—signal institutional confidence in the cryptocurrency’s long-term potential [1]. Despite recent downward pressure, the firm’s consistent accumulation suggests a belief in Bitcoin’s resilience.
On-chain data provides further insight into the price recovery. According to Glassnode, the spending volume of Bitcoin’s Short-Term Holders (STH) has cooled, dropping below the neutral level to 45% [1]. This suggests a decrease in profit-taking activity, allowing the price to rebound. The firm also noted that 70% of STH supply is currently in profit, indicating a relatively balanced market [1]. Similarly, on-chain analytics platform Checkonchain highlighted that recent buyers near all-time highs are now selling more aggressively, while new buyers are entering the market at lower prices [1]. This dynamic could signal a consolidation phase, with market watchers awaiting a potential short-term dip to confirm the strength of the bullish trend.
Over the previous week, BTC experienced heightened volatility, fluctuating between $113,365 and $118,069 [1]. Despite two consecutive days of bearish sentiment, buyers regained control in the final days of the week, with BTC settling at $115,097 on Monday [1]. The ongoing session has seen renewed bullish momentum, with the price climbing to around $116,800 [1].
Market observers are closely monitoring the behavior of STHs and the broader sentiment shifts brought on by regulatory and macroeconomic developments. While short-term volatility remains a factor, the recent price action suggests a potential stabilization in the market, especially with the anticipated inclusion of Bitcoin in retirement portfolios [1]. Analysts, however, caution that this remains a regulatory forecast and not an immediate implementation [1].
Source: [1] Bitcoin Price Analysis: BTC Reclaims $116,000 As Markets Recover (https://bitzo.com/2025/08/bitcoin-price-analysis-btc-reclaims-116000-as-markets-recover)

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