Bitcoin Plunges to $113,000 as Altcoins Drop Up to 6%
Among other major coins, XRP slipped 1.5% to $3.01, BNB declined 4.4% to $759.01, and Solana (SOL) lost 5.4% to $165.69.
Quick overview
- Bitcoin (BTC) fell to around $113,000, distancing itself from its all-time high of $122,979.87.
- The broader crypto market saw altcoins retreating by up to 6%, mirroring losses on Wall Street due to new U.S. tariffs.
- A report suggests that BTC's drop below $116,000 could indicate a deeper correction, influenced by market volatility and restrictive macroeconomic conditions.
- Analysts highlight the importance of maintaining support levels for BTC and ETH, alongside positive regulatory developments to reverse the bearish trend.
Bitcoin (BTC) extended its downward trend on Friday, dropping to around $113,000 and distancing itself from its all-time high of $122,979.87 reached on July 14.
The broader crypto market followed suit, with altcoins retreating by as much as 6%, according to Binance data. The selloff in cryptocurrencies mirrors losses on Wall Street, where major stock indexes fell in response to a series of aggressive new tariff announcements by the U.S., which rattled global markets.
BTC dropped 3% on the day to $113,483, while Ethereum (ETH) fell 5.6% to $3,545.45. Over the past week, Bitcoin is down 2.7% and ETH has shed 3.6%.
Among other major coins, XRP slipped 1.5% to $3.01, BNB declined 4.4% to $759.01, and Solana (SOL) lost 5.4% to $165.69. Memecoin Dogecoin (DOGE) retreated 3% to $0.2066, and Tron (TRX) edged down 0.6% to $0.326.
Potential for a Deeper Correction Ahead
According to a new report from Buenbit, the latest U.S. tariffs on countries without bilateral trade deals have amplified market volatility, pressuring the S&P 500 and boosting the U.S. dollar—both of which have weighed on crypto assets.
The report noted that BTC broke below the $116,000 mark this week, ending a 16-day consolidation period—an indicator that a deeper correction could be underway. “This technical breakdown occurred in a macroeconomic context that, while relatively stable, remains restrictive,” the report added. The Federal Reserve recently held its benchmark interest rate steady at 4.25%–4.50% for a fifth consecutive time, and fresh U.S. tariff announcements added further turbulence to global markets.
In parallel, the U.S. government released an extensive digital asset policy report with recommendations for the SEC, Treasury, and banking regulators, aiming to clarify the regulatory framework for crypto markets.
Looking ahead to August—a historically tough month for cryptocurrencies since 2021—analysts at Buenbit emphasize the importance of maintaining key support levels: $114,000 for BTC and $3,500 for ETH. Positive flows into in-kind exchange-traded products (ETPs) and visible progress on regulatory implementation will also be crucial to reversing the current bearish cycle.
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