August 2025 has started tense for the cryptocurrency world as Bitcoin faces a sharp decline fueled by investor panic. The main reason is the massive selling of BTC and transfers to exchanges.
Panic Among Small Investors
On August 1st, **short-term holders (STH) transferred over 40,000 BTC at a loss**, the highest volume since mid-July. This led Bitcoin's price to drop below $112,000, further igniting fear among small holders. This dynamic indicates a real loss of confidence in the asset. Many discuss collective capitulation on forums, confirming bearish sentiments in the market.
Behavior of Major Players
The Exchange Whale Ratio exceeded 0.70, indicating that most deposits come from whales. The situation shows that major investors prefer to liquidate their positions, reinforcing the downward trend. This is further evidenced by record withdrawals from US Bitcoin ETFs, which reached $812 million in one day. It demonstrates that the primary pressure on the market is now being exerted by major players.
Future of Bitcoin: Correction or Rebound?
Current data analysis indicates a possible turning point in the market. Daily inflows of Bitcoin have increased from 5,300 BTC to 7,000 BTC since early July. However, the following days will be decisive in understanding whether the asset's price will recover or continue to plunge. Small holders are leaving the market, while actions from major players are increasing volatility.
Thus, the sharp drop of Bitcoin below $115,000 resulted from combined pressure from small and large investors. In the context of global economic uncertainty, BTC remains a vulnerable asset.
