Bitcoin (BTC) fell below $113,000, declining 0.33% on August 21, 2025. This drop was triggered by macroeconomic concerns and anticipation of Jerome Powell's Jackson Hole speech.
Bitcoin Decline and Its Causes
The price drop of Bitcoin is attributed to the anticipation of Jerome Powell's speech, creating macroeconomic uncertainty. Investors are preparing for potential shifts in the market.
Impact of Liquidations on the Market
Liquidations surpassed $500 million, significantly impacting leveraged positions. This market movement coincided with regulatory probes involving major industry figures, further complicating market sentiment.
Market Outlook Amidst Regulation
According to André Dragosch of Bitwise Asset Management, a potential rate cut could support Bitcoin's price recovery in the coming months.
The decline of Bitcoin and associated liquidations highlight its vulnerability to macroeconomic factors. Regulatory scrutiny adds complexity, resulting in uncertainty in the cryptocurrency market.
