Bitcoin’s Bull Run Potential After $112K Dip
- Bitcoin dropped below $112,000; market anticipates a rebound.
- Altcoin season is projected to start soon.
- Institutional repositioning affects market dynamics significantly.
Bitcoin experienced a significant decline, dropping below $112,000 in early August 2025, with influential market analysts and institutions suggesting a potential resumption of the bull market.
This event has implications for market dynamics, impacting asset rotation and signaling possible altcoin gains, as institutional and community sentiment suggests looming bullish trends despite ongoing bearish macro factors.
Bitcoin fell below $112,000 in early August 2025, with analysts predicting a potential bull run driven by various market signals.
This event affects investor behavior and market strategies, potentially reshaping cryptocurrency dynamics in the coming months.
Bitcoin Falls Below $112K After Massive BTC Sell-Off
In early August 2025, Bitcoin’s price plunged below $112,000 after an 80,000 BTC sell-off by Galaxy Digital. Market participants watch for signs of a potential rebound. MerlijnTrader, a veteran analyst on X, stated:
BTC Dominance has officially broken its 3-year trend line, a key signal that altcoins are about to run. He calls this ‘Phase 4’ of the 2021 playbook, the start of a massive altcoin season.
Notable analysts on X, like @MerlijnTrader, highlighted Bitcoin’s dominance breakdown, suggesting an upcoming altcoin season.
33% Trading Volume Surge Amid Liquidity Shock
The price decline resulted in a temporary liquidity shock, with trading volumes surging by 33%. Crypto traders and investors adjusted their portfolios reacting to shifts. Financial impacts include potential capital rotation into altcoins and DeFi platforms, influencing broader market dynamics and investment patterns.
Summer Trends: Historical August Market Behavior
Historically, market trends in August have been impacted by high U.S. interest rates, causing summer dips in 2021 and 2023. Similar patterns inform current market expectations. Data from previous cycles suggests a likely capital shift towards altcoin projects, echoing past market behaviors following sharp Bitcoin corrections. For additional insight into employment trends correlating with these events, see the Employment Situation Summary.
| Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor. |
