On August 14, 2025, Bitcoin saw a drop to $118,000 from record highs of over $124,000, contributing to a wider decline in the crypto market. This sell-off, marked by over $1 billion in liquidations mostly affecting long positions, is viewed by analysts as a normal profit-taking consolidation in an ongoing bullish trend. Analysts emphasized that the Federal Reserve's anticipated interest rate cuts and sustained institutional demand continue to fuel a positive outlook for cryptocurrencies. Despite the immediate risks posed by inflation data and high valuations, experts believe the recent pullback is a healthy recalibration rather than a market reversal. Key market strategists, like David Siemer from Wave Digital Assets, support this view, suggesting that dips will be well-supported and that the general sentiment in the crypto markets remains constructive. In parallel, NEAR Protocol faced its volatility with significant institutional selling but managed a slight recovery amid these turbulent conditions.

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