Reasons for Bitcoin's decline?
So, August in the cryptocurrency market does not greet us hospitably; the first day of the month hit $115,000, dropping to $114,384, a figure that I believe was at the beginning of July, and later the rate corrected, but the residue remains?
And why did this happen and what is the reason for the decline of #Bitcoin $BTC ?
First, it's political and quite predictable: a new round of the trade war unleashed by Donald Trump. The order to raise tariffs for a number of countries caused a fierce reaction in the markets. Investors, unwilling to take risks, began to exit 'dangerous' assets en masse, and cryptocurrency, as always, was the first to feel the heat.
As a result, both Asian stock markets and Bitcoin have declined. It's logical: those who didn't hide — lost percentage points 😂😂 that's how it is.
Liquidations and other troubles
Against the backdrop of a sharp decline, margin calls were triggered: about 160,000 traders were liquidated in a day. Mass liquidations only intensified the pressure on the market — like a domino effect, but with no chances for position resurrection; most importantly, the majority of liquidations occurred on high leverage. This is another reminder that leverage is not a trampoline, but a shovel that can dig you a grave. Outflow from 'spot': minus $110 billion in half a day.
Another factor that intensified the decline was a sharp outflow of capital from the spot market. In 12 hours, there was a $110 billion decrease. Some went to fiat, some to stablecoins, and some simply 'hid in the bushes' until better times. These movements sharply reduced liquidity and made Bitcoin's rate especially sensitive to large orders.
What awaits us all in the future?
There are several scenarios. At the moment, the market looks slightly battered, but not broken. Many are waiting for a pullback to $110–112 thousand before a new upward impulse begins. But it all depends on how Trump's tariff saga ends and how the funds behave.
💡 One obvious conclusion: #bitcoin remains an asset with character. And if you invest in it, be prepared for emotional roller coasters, sounds cool?
