Bitcoin price bounces back after tariff-induced drop – Could see a $140,000 surge
nomic challenges and uncertainties, the Bitcoin price is currently in a phase of recovery after experiencing a significant downturn due to concerns surrounding tariffs and overall economic instability. The question that looms in the minds of many investors is whether or not Bitcoin will still see a surge towards the coveted $140,000 mark as we progress through the month of August.
After enduring substantial losses, Bitcoin has managed to find its footing above the $114,000 mark. Last week, a sense of unease gripped the market following lackluster U.S. job data and escalating trade tensions, causing a shift away from risk assets. However, the steady flow of funds into ETFs and continued accumulation by institutional investors are sustaining hope for a potential breakout in the near future.
Presently, Bitcoin is trading at approximately $114,700, indicating signs of stabilization in the aftermath of a tumultuous week. Over the past few days, Bitcoin encountered a decrease of nearly 3% in value amidst anxieties regarding the sluggishness of the U.S. economy and global trade disruptions, factors that prompted a general aversion to riskier assets.
This decline was exacerbated by unsatisfactory U.S. nonfarm payrolls data, falling short of projections and hinting at possible weaknesses in the labor market. The dismissal of the head of the Bureau of Labor Statistics by President Trump further added to the uncertainty, casting doubt on the reliability of future government reports. While Bitcoin may not have a direct relationship with job figures or tariffs, it remains highly sensitive to broader economic sentiment, often experiencing heightened levels of volatility when investor confidence wanes.
From a technical perspective, Bitcoin is currently hovering below a critical resistance range spanning $115,000 to $120,000. Historically, this range has played a crucial role in past market cycles, with a clean break above the upper boundary potentially signaling the beginning of a more robust rally. Indicators present a mixed outlook, with the Bitcoin RSI situated in a neutral position, offering limited guidance to analysts who are closely monitoring various market activities for clues regarding a potential breakout.
Institutional involvement continues to be a bright spot for Bitcoin, with U.S. Bitcoin ETFs witnessing a record $12.8 billion influx in July, pointing towards sustained interest from large-scale investors. This heightened interest has led to a reduction in circulating supply, potentially bolstering price levels if this trend persists. Additionally, Metaplanet Inc. of Japan recently expanded its Bitcoin holdings substantially through a significant acquisition and announced plans for a noteworthy capital raise to further grow its Bitcoin reserves.
The proposed BITCOIN Act of 2025, currently under review in Congress, could mark a significant shift in U.S. crypto policy by establishing a Strategic Bitcoin Reserve, symbolizing a national interest in the digital asset. As the 2025 Bitcoin halving approaches, long-term investors are eyeing this event as a key driver for potential growth, historically leading to periods of tightened supply and extended bull runs. Network advancements like the Bitcoin Lightning Network are also improving transaction efficiency, while Bitcoin’s role as a hedge against inflation is gaining traction among institutional players and sovereign nations alike, bolstering its value proposition in the long run.
Overall, despite the prevailing macroeconomic uncertainties, a sense of cautious optimism prevails in the market as Bitcoin navigates through challenging waters, aiming for potential growth opportunities in the near future.
