#MarketTurbulence $BTC Bitcoin’s Record-Breaking Rally Stalls as Policy Signals Trigger Market Shake-Up
August 15, 2025 — Bitcoin (BTC) has had a whirlwind week, smashing through $124,000 to set a new all-time high before tumbling back below $119,000 in less than 24 hours.
The rally began on the back of strong institutional inflows, renewed investor optimism, and growing speculation that the U.S. Federal Reserve may begin easing interest rates. This optimism was fueled further by a surge in crypto-friendly policy discussions, including proposals to allow cryptocurrencies in 401(k) retirement accounts.
However, sentiment shifted sharply after U.S. Treasury Secretary Scott Bessent confirmed there were no immediate plans for the government to purchase Bitcoin for its strategic reserves—an idea that had been circulating among crypto advocates. The announcement, paired with a hotter-than-expected Producer Price Index (PPI) report, rattled investors and triggered over $1 billion in crypto market liquidations.
Despite the pullback, institutional players showed no signs of retreat. BlackRock’s iShares Bitcoin Trust (IBIT) deployed more than $500 million into BTC during the dip, matching similar inflows into its Ether ETF—sending a strong signal of long-term confidence in the asset.
Market analysts are now debating whether the recent high was a “bull trap” or a stepping stone to further gains. Bitcoin is currently consolidating in the $116K–$124K range, with key support seen near **$118K
