Bitcoin has plunged below $115,200, sending shockwaves across the crypto market as U.S. tariff announcements trigger a massive sell-off. The sudden drop has left traders scrambling, with Ethereum, Solana, and Dogecoin also suffering steep declines. Here’s what you need to know.
Bitcoin News: Why the Sudden Drop Below $115,200?
The crypto market took a sharp downturn in early August 2025, with Bitcoin leading the decline. The U.S. government’s proposed tariffs on key imports created a risk-off sentiment, pushing investors away from volatile assets like cryptocurrencies. Key factors behind the drop include:
- Macroeconomic concerns: Federal Reserve warnings about slowing economic growth added to market uncertainty.
- Leveraged liquidations: Over $630 million in positions were wiped out in 24 hours, mostly from long traders.
- Profit-taking: Many investors cashed out amid fears of further declines.
Crypto Market Dip: How Major Altcoins Performed
The sell-off wasn’t limited to Bitcoin—Ethereum, Solana, and Dogecoin also saw significant losses:
| Cryptocurrency | Price Drop | Key Level |
|---|---|---|
| Ethereum (ETH) | -5.5% ($3,663) | Briefly touched $3,600 |
| Solana (SOL) | -6% | High volatility due to regulatory concerns |
| Dogecoin (DOGE) | -8% | Retail-driven decline |
U.S. Tariffs and Their Impact on Crypto
The proposed tariffs disrupted global markets, leading to a 3.82% drop in total crypto market capitalization ($3.75 trillion). Analysts suggest this could be a short-term correction rather than a long-term bearish trend.
Ethereum Decline: Will Spot ETFs Provide Support?
Despite falling nearly 5.5%, Ethereum saw slight rebounds due to retail buying and continued inflows into spot ETFs, which have now accumulated $21.85 billion.
Solana Drop: High Volatility Amid Regulatory Fears
Solana’s steep decline reflects broader concerns about economic and regulatory challenges. However, institutional interest remains strong, suggesting potential recovery.
Expert Insights: Is This a Buying Opportunity?
Analysts remain cautiously optimistic:
- Vikram Subburaj (Giottus): “Bitcoin’s $115,000 support is critical—if it holds, the uptrend remains intact.”
- Parth Srivastava (9Point Capital): “Institutional demand could drive a Q4 breakout if the market stabilizes.”
What’s Next for the Crypto Market?
Traders are watching U.S. trade policy and economic indicators closely. While short-term volatility persists, long-term confidence remains, supported by Tether’s $4.9 billion Q2 profit and bullish BTC options activity.
FAQs
1. Why did Bitcoin drop below $115,200?
The decline was triggered by U.S. tariff announcements, leading to a risk-off sentiment and leveraged liquidations.
2. How much did the total crypto market lose?
The market cap fell 3.82% to $3.75 trillion.
3. Will Ethereum recover from this dip?
Spot ETF inflows and retail buying could help stabilize Ethereum’s price.
4. Is Solana’s drop a sign of deeper issues?
While regulatory concerns persist, Solana’s high-performance blockchain still attracts institutional interest.
5. Should I buy the dip?
Analysts suggest cautious optimism, with Bitcoin’s $115,000 level being a key support to watch.
