Bitcoin’s price declined sharply on August 18, 2025, slipping more than 7% to trade below $115,000 after a weekend marked by significant profit-taking activity. On Saturday alone, traders booked around $3.3 billion in net realized gains—the highest single-day figure since mid-July—according to on-chain analytics from Glassnode. Over the entire weekend, total realized profits approached $3.5 billion, representing substantial selling pressure following Bitcoin’s all-time high near $124,000 earlier in the month.
This latest downturn follows a pattern of diminishing correction amplitudes throughout 2025. After reaching successive record highs in January, May and July, each pullback has been shallower: January’s slide bottomed at roughly 30% below peak, May’s correction was about 12%, July’s about 9%, and the current drop now sits near 8% below the August peak. The consistent narrowing of drawdown depth suggests a maturing market with increased resilience against major sell-offs.
Market participants cited shifting macroeconomic factors as additional catalysts for the sell-off. Rising U.S. Treasury yields and ongoing commentary from Federal Reserve officials at the annual Jackson Hole symposium have heightened concerns over potential tightening measures. Although Bitcoin has decoupled somewhat from traditional risk assets in recent months, the confluence of profit-taking and macro headwinds created a ripe environment for a near-term pullback.
Technically, Bitcoin’s price breached key support near $117,000 before accelerating downward. Trading volumes surged on major exchanges as retail and institutional investors alike weighed whether this retracement represents an opportunity to re-enter or a prelude to further downside. Analysts remain divided; some forecast additional near-term pressure toward the $110,000 level, while others anticipate a quick rebound if profit-taking abates and macro indicators stabilize.
Looking ahead, the market will gauge incoming U.S. consumer price index data and any Federal Reserve communications for cues on liquidity conditions. Historical behavior suggests that after significant profit-taking, Bitcoin may re-test previous support levels before resuming its broader uptrend, assuming demand persists. For traders, the current pullback underscores the need for risk management strategies amid ongoing volatility in the post-ATH landscape.
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