📉 Bitcoin Dips Below $116K Amid Caution: What’s Driving the Pullback?

Bitcoin ($BTC ) has dropped below $116,000, down over 5% after recently peaking at over $123,000. The pullback has sparked caution across the crypto market — but what's causing it?

🔻 1. Profit-Taking After a Major Rally

Many large holders are securing profits after the recent surge. BTC failed to hold above key resistance at $120K, triggering a wave of sell-offs once it fell below $118K.

🐋 2. Whale Movements & Dormant Wallets

Major wallets are active again. Galaxy Digital reportedly moved 3,400 BTC (~$395M), likely to exchange. Several dormant wallets also reactivated, suggesting long-term holders may be selling.

📉 3. Macroeconomic & Policy Uncertainty

Investors are waiting for the U.S. Federal Reserve’s policy update on July 30, which may affect interest rates and crypto regulation. Pending policies like the GENIUS Act are also adding to uncertainty.

🔄 4. Rotation Into Altcoins

While BTC struggles, altcoins like Ethereum (ETH) are holding stronger, suggesting investors are shifting to assets with better short-term potential.

🔍 Key Level to Watch

If $BTC breaks below $114,500, further decline toward $112,000 is possible. Watch for whale movements, stablecoin flows, and ETF activity for market sentiment signals.

💬 Your Move

Are you buying the dip, rotating into ETH, or waiting for the Fed? Drop your thoughts below!

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