Bitcoin News Today: Bitcoin Tumbles 7% in Volatile August Amid Macroeconomic Headwinds

The cryptocurrency market entered August 2025 amid growing concerns over economic and geopolitical uncertainties, echoing historical trends of volatility during the month. Analysts have pointed to a combination of macroeconomic headwinds, including hawkish signals from the Federal Open Market Committee (FOMC), rising trade tensions, and geopolitical instability, which culminated in a sharp correction over the weekend of 1 August. The market witnessed approximately £922 million in liquidations, with open interest declining from £88 billion to £79 billion as traders de-leveraged positions [1]. Altcoins bore the brunt of the sell-off, while Bitcoin’s market dominance surged to 62.5%, reflecting a flight to more established assets [1].

Economic uncertainty remains a key driver of concern, with Bank of America’s CEO highlighting the persistent threat of a broader economic downturn. Analyst Poppe has similarly warned of looming risks, emphasizing how heightened economic anxiety can ripple through the crypto market. He notes that rising gold prices often serve as a bellwether for global economic sentiment and could signal further challenges for altcoins in the coming weeks [1].

Robert Kiyosaki has joined the chorus of bearish analysts, forecasting that Bitcoin could fall to as low as $90,000 during the month [9]. This aligns with historical patterns, as Bitcoin has recorded negative returns in eight of the last twelve Augusts. The recent 7% drop in August 2025 has also drawn comparisons to past post-halving cycles, raising speculation about a potential recovery in the fourth quarter [2]. Despite the bearish sentiment, some analysts remain cautiously optimistic. Alex Krüger observed that the sharp weekend sell-off may have marked a tradable low, drawing parallels to similar patterns in 2024 [7].

Meanwhile, corporate treasury strategies are evolving, with publicly traded firms increasingly treating cryptocurrencies as intangible assets. This trend, however, remains cautious, as institutional exposure has not yet reached significant levels, with over-the-counter (OTC) desk flows showing only modest activity [1]. A new development this month has seen companies exploring the use of altcoin reserves, including assets like DOGE, ETH, SOL, and LTC, as a cost-effective way to bolster share prices [1].

Investor sentiment is also influenced by key upcoming economic reports, including balance of trade figures from Australia and China, with the RBA set to announce its interest rate decision on 12 August. China’s inflation data on 9 August will further shape perceptions of the global economic outlook and its impact on crypto flows [1]. The Fed’s potential shift in monetary policy is another factor under close scrutiny, as traders await clarity on central bank direction amid diverging economic signals [3].

Despite the short-term turbulence, Bitcoin bulls remain optimistic. Long-term holders continue to believe in the asset’s future, a sentiment reflected in the success of the Bitcoin Hyper token presale, which recently surpassed $7 million in funding [10]. As the market remains at a crossroads, investors are advised to closely track emerging news and trends that could shape their strategies in the coming weeks [1].

Sources:

[1] https://www.hubbis.com/news/hubbis-partners-with-independent-reserve-to-bring-you-weekly-crypto-news-and-market-trends-crypto-markets-reel-from-922m-liquidations-amid-hawkish-macro-signals-as-bitcoin-dominance-climbs

[2] https://coinpedia.org/news/bitcoin-cycle-repeats-analysts-watch-for-post-halving-bounce-after-august-dip/

[3] https://www.thedigitalcommonwealth.com/posts/stocks-up-while-crypto-continues-sideways

[7] https://www.mitrade.com/insights/news/live-news/article-3-1011282-20250805

[9] https://coinlaw.io/kiyosaki-bitcoin-crash-august-prediction/

[10] https://disruptafrica.com/2025/08/05/bitcoin-bulls-remain-strong-as-recovery-is-in-play-hyper-presale-hits-7m/