Bitcoin Dips Below $113,000 Amid Market Uncertainty

Bitcoin Dips Below $113,000 Amid Market Uncertainty

Bitcoin (BTC) fell below $113,000, declining 0.33% on August 21, 2025. The drop was triggered by macroeconomic concerns and anticipation of Jerome Powell’s Jackson Hole speech, resulting in significant leveraged liquidations and impacting investor sentiment in the digital asset market.

The event signals Bitcoin’s vulnerability to macroeconomic cues, with potential repercussions for global market stability.

Bitcoin’s slip below $113,000 is attributed to the anticipation of Jerome Powell’s speech , causing heightened macroeconomic uncertainty. Leveraged liquidations surpassed $500 million as investors braced for market shifts. Despite no official comment from Jerome Powell, trading activity indicates significant market attentiveness to his pending statements. Meanwhile, Ryan Lee of Bitget Exchange suggested a possible market rebound if the $112,000 support holds.

The drop in Bitcoin’s price spurred liquidations totaling over $500 million, notably impacting leveraged positions. This market movement coincides with regulatory probes involving major industry figures, contributing to jittery market sentiment. The event not only affects Bitcoin but also correlates with declines in related cryptocurrencies like Ethereum and major altcoins. André Dragosch of Bitwise Asset Management highlighted the potential for a rate cut to revitalize Bitcoin’s upward trajectory.

André Dragosch, Head of European Research, Bitwise Asset Management, “The first rate cut could support the continuation of Bitcoin’s rally at least until the end of the year.”

Market liquidity has thinned as traders adopted a risk-off stance ahead of macroeconomic developments. World Liberty Financial , associated with the Trump family, remains under scrutiny amidst SEC investigations, further complicating the market outlook. Historical trends indicate that speeches at the Jackson Hole meeting have previously influenced market risk sentiment, evident in similar Bitcoin corrections during 2023 and 2024.