📉 August 2025 didn’t exactly roll out the red carpet for the crypto market: on the very first day, Bitcoin broke below the $115,000 level, dipping to $114,384 – prices last seen in early July. Yes, it later bounced back slightly, but the uneasy feeling lingered.
Our editorial team decided to investigate: what went wrong, and is it time to panic?
Geopolitics strikes again
First culprit – politics, and not a surprising one: a new round of trade war triggered by Donald Trump. His executive order on tariff hikes for several countries stirred up global markets. Investors, wary of risk, started pulling out of “volatile” assets – and crypto, as usual, got hit first.
Asian stock markets fell. So did Bitcoin. Makes sense: those who didn’t hide in time lost a chunk.
Profit-taking: common sense still applies
After reaching a historic all-time high of $127,000 (just weeks ago!), many large players started locking in profits. Some moved to stablecoins, others – to tropical islands. The price dropped. Nothing tragic – just another market cycle.
Interestingly, most analysts remain bullish. They point to the correlation between Bitcoin and global liquidity (M2), which central banks continue to expand. That means growth may resume after this breather.
Liquidations and other headaches
The sharp dip triggered margin calls: about 160,000 traders were liquidated within a day. These mass liquidations added fuel to the fire – like a domino effect, only with no way to recover positions.
Important: most of the liquidations were on high leverage. A reminder that leverage isn’t a trampoline – it’s a shovel you can dig your own grave with.
Spot outflow: minus $110B in 12 hours
Another hit came from a sudden capital outflow from the spot market. In just 12 hours – $110 billion gone. Some ran to fiat, others to stables, some just “hid in the bushes” until better times.
These moves dried up liquidity and made Bitcoin’s price hypersensitive to large orders.
What’s next?
There are a few possible scenarios. For now, the market looks bruised but not broken. Many expect a dip to $110K–112K before the next upward impulse. But that depends on how Trump’s tariff drama unfolds – and what the funds do next.
💡 One thing’s clear: Bitcoin still has a personality. If you’re investing in it – buckle up for the emotional roller coaster.
But as history shows, every crash is not the end – just the start of a new chapter.
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