Bitcoin drops below $120K due to U.S. Treasury policy shift; market reactions analyzed.
- U.S. Treasury halts direct Bitcoin purchases, causing market impact.
- Bitcoin falls below $120,000 mark.
- Expert analysts note pattern similarities with past cycles.
Bitcoin’s price fell sharply to $116,352 in mid-August 2025 after the U.S. Treasury halted direct purchases, undermining previous bullish sentiment.
This decline raises concerns about future volatility, with technical analysts speculating on a potential drop below $110,000, despite ongoing institutional accumulation and macroeconomic influences.
Bitcoin’s value plummets as U.S. Treasury halts direct crypto purchases, impacting markets significantly.
The shift in U.S. Treasury policy has shaken investor confidence, leading to Bitcoin’s plunge below $120K, and raises concerns over future market stability.
U.S. Treasury Policy Halts Boost Bitcoin Decline
The recent drop in Bitcoin’s price is primarily attributed to statements from the U.S. Treasury, ending speculation of government purchasing cryptocurrency. Historically, Bitcoin performed similarly in previous cycles. Scott Bessent, U.S. Treasury Secretary, confirmed that Bitcoin reserves will grow through confiscations, not acquisitions. This marked a policy shift, affecting market expectations significantly.
“The U.S. will continue building its strategic Bitcoin reserve exclusively through confiscated crypto assets, with no taxpayer-funded acquisitions.” — Scott Bessent, Treasury Secretary
Bitcoin Hits $116,352 Triggering $1 Billion Liquidations
Bitcoin’s drop to $116,352 has caused over $1 billion in liquidations across major exchanges. Market confidence was rattled by these losses, triggering widespread sell-offs. The financial implications extend to other cryptocurrencies, including ETH. Analysts observe this leverage unwinding as a typical cycle correction, with an expectation for eventual stabilization.
Comparison to Historical September Crashes
Recent events resemble the September crashes of 2013, 2017, and 2021, typically followed by recovery. Analysts see this as part of a predictable pattern rather than a long-term threat. Due to similar historical trends, analysts forecast potential near-term volatility, but data suggests a probability of a late-year rally, aligning with past behavior.
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