In August 2025, Bitcoin's value dropped below $116,000, influenced by economic factors, including Federal Reserve decisions and new U.S. tariffs.
Decline of Bitcoin's Value
According to Binance data, the cryptocurrency was trading at 115,929 USDT, reflecting a daily decline of 1.28% amid growing investor caution.
Institutional Buy-In
Tokyo-based Metaplanet Inc. announced the purchase of 775 BTC, highlighting continued institutional interest in Bitcoin as a treasury asset. This indicates a divergence from the overall downtrend in market prices.
Economic and Political Influences
The introduction of new tariffs by the U.S. administration also affected market instability, creating additional pressure on digital assets. With high-interest rates, the existing cautious investor sentiment continues to slow down capital flows into cryptocurrencies.
Bitcoin's current situation reflects a combination of immediate economic pressures and historical market behaviors. Concerns over high volatility and reduced liquidity continue to affect investor sentiment.