{"id":53760,"date":"2025-08-20T04:22:57","date_gmt":"2025-08-20T04:22:57","guid":{"rendered":"https:\/\/emilynews.com\/blog\/?p=53760"},"modified":"2025-08-20T04:22:57","modified_gmt":"2025-08-20T04:22:57","slug":"why-is-bitcoin-crashing-and-will-112k-be-the-final-bottom","status":"publish","type":"post","link":"https:\/\/emilynews.com\/blog\/?p=53760","title":{"rendered":"Why is Bitcoin crashing and will $112K be the final bottom?"},"content":{"rendered":"<p>Bitcoin\u2019s drop below $113,000 reflects investors\u2019 worries about the US economy, stock markets and crypto, but the volatility does not end BTC\u2019s long-term bullish trend.<\/p>\n<p><strong>Key takeaways:<\/strong><\/p>\n<ul>\n<li>\n<p>Bitcoin\u2019s options market signals extreme fear, but historical patterns show potential for significant rebounds.<\/p>\n<\/li>\n<li>\n<p>Global economic pressures from US trade tariffs negatively affected traders\u2019 sentiment.<\/p>\n<\/li>\n<\/ul>\n<p>Bitcoin fell below $113,000 for the first time in over two weeks, surprising traders and triggering the liquidation of $113 million in leveraged long positions. The sharp decline followed the $124,176 all-time high on Thursday, raising questions about whether the bull market is over as the macroeconomic environment grows more uncertain.<\/p>\n<h2>SEC investigation and corporate AI disappointments<\/h2>\n<p>Bitcoin\u2019s price correction accelerated after reports that the United States Securities and Exchange Commission (SEC) is allegedly investigating fraud and stock manipulation at Alt5 Sigma, a company that recently partnered with US President Donald Trump\u2019s World Liberty Financial in a $1.5 billion deal.<\/p>\n<figure><img decoding=\"async\" title=\"\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2025-08\/0198c48e-4b44-754b-83ef-1f3047244b2b\" \/><figcaption><em>Source: X\/<\/em><em>zoomerfied<\/em><\/figcaption><\/figure>\n<p>World Liberty, whose website lists President Donald Trump as \u201cco-founder emeritus,\u201d raised roughly $550 million through two public token sales, marketing itself as a DeFi and stablecoin platform. In June, Trump disclosed earning $57.4 million from his stake in World Liberty Financial, while Eric Trump is slated to join Alt5 Sigma\u2019s board.<\/p>\n<p>Cryptocurrency investors also reacted to a 1.5% drop in the Nasdaq 100 after MIT NANDA research, based on 150 corporate interviews and 300 public artificial intelligence deployments, found that 95% of companies failed to achieve rapid revenue growth from AI pilot programs.<\/p>\n<h2>US import tariffs and weakening confidence in the Fed<\/h2>\n<p>Another factor driving risk aversion was the US\u2019s new 50% import duties on 407 additional aluminum- and steel-containing products. The affected items include everyday goods such as car parts, plastics, and specialty chemicals, prompting economists to raise concerns about supply chain disruptions and higher consumer prices.<\/p>\n<p>UBS investment bank lifted their gold price forecast to $3,700 by September 2026, according to CNBC. UBS strategists expect gold price to rally from below-trend economic growth, Federal Reserve policy easing and a weaker dollar. Investor concerns over the US fiscal deficit and questions about Fed independence also underpin the outlook.<\/p>\n<figure><img decoding=\"async\" title=\"\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2025-08\/0198c491-59d5-7ce4-972f-562e8c885994\" \/><figcaption><em>US Dollar Index (DXY, left) vs. gold\/USD (right). Source: <\/em><em>TradingView<\/em><\/figcaption><\/figure>\n<p>Amid growing fears of economic contraction and the potential impact on companies linked to Trump\u2019s World Liberty Financial, demand for downside protection surged in Bitcoin derivatives markets. The BTC options skew metric turned bearish on Friday and has continued to deteriorate, reflecting heightened investor caution.<\/p>\n<figure><img decoding=\"async\" title=\"\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2025-08\/0198c48e-503e-75de-aaab-b7ebc9098aaa\" \/><figcaption><em>Bitcoin 30-day options delta skew (put-call) at Deribit. Source: <\/em><em>laevitas.ch<\/em><\/figcaption><\/figure>\n<p>The Bitcoin 30-day options delta skew (put-call) surged to 12%, its highest level in over four months. Under neutral conditions, this indicator typically oscillates between -6% and +6%, reflecting balanced pricing for call (buy) and put (sell) options. Levels above 10% signal extreme fear but are rarely sustained.<\/p>\n<p><em><strong>Related: <\/strong><\/em><em><strong>Bitcoin \u2018liquidity zones swept\u2019 but uptick in open interest hints at BTC recovery<\/strong><\/em><\/p>\n<p>A prior spike to 13% delta skew occurred on April 7, when Bitcoin dropped below $74,500 for the first time in five months. Investors who embraced the risk then saw gains of 40% over the following month as Bitcoin rallied to $104,150 by May 8.<\/p>\n<p>There is no evidence that Bitcoin\u2019s bull run has ended. Traders\u2019 fear often overshoots rational expectations. In fact, the cryptocurrency might even benefit from potential outflows in the stock market, suggesting that current turbulence does not invalidate the market\u2019s longer-term bullish trend.<\/p>\n<p>*********************************<\/p>\n<p>Be the first to get most important HYIP news everyday!<br \/>\nSimply Follow <a href=\"https:\/\/www.facebook.com\/EmilyNewsOnline\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong style=\"text-decoration: underline;\">EN Facebook<\/strong><\/a>, <a href=\"https:\/\/telegram.me\/CryptoHyipsEN\" target=\"_blank\" rel=\"noopener noreferrer\"><strong style=\"color: #c03939; text-decoration: underline;\">EN Telegram<\/strong><\/a>, <a href=\"https:\/\/twitter.com\/EmilyHyipNews\" target=\"_blank\" rel=\"noopener noreferrer\"><strong style=\"text-decoration: underline; font-size: 1.3em;\">EN Twitter<\/strong><\/a><br \/>\nor Subscribe to <strong><a style=\"color: #c03939; text-decoration: underline;\" href=\"https:\/\/feedburner.google.com\/fb\/a\/mailverify?uri=Emilynews\" target=\"_blank\" rel=\"noopener noreferrer\">EN Feedburner<\/a><\/strong> and submit your email address!<\/p>\n<p>If you like this article and want to support EN \u2013 please share it by using at least few of social media buttons below. Thanks and See you tomorrow!<\/p>\n<p><a href=\"https:\/\/emilynews.com\/blog\/wp-content\/uploads\/2020\/11\/Reminder2-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-13137\" src=\"https:\/\/emilynews.com\/blog\/wp-content\/uploads\/2025\/02\/Reminder2-1.jpg\" alt=\"\" width=\"544\" height=\"600\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin\u2019s drop below $113,000 reflects investors\u2019 worries about the US economy, stock markets and crypto, but the volatility does not end BTC\u2019s long-term bullish trend. Key takeaways: Bitcoin\u2019s options market signals extreme fear, but historical &hellip; <a title=\"Why is Bitcoin crashing and will $112K be the final bottom?\" class=\"exalt-read-more\" href=\"https:\/\/emilynews.com\/blog\/?p=53760\"><span class=\"screen-reader-text\">Why is Bitcoin crashing and will $112K be the final bottom?<\/span>Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":53762,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5651,6],"tags":[139,3544,3812,5652,10,159,97],"class_list":["post-53760","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptonews","category-information","tag-bitcoin","tag-bitcoin-news","tag-cryptonews","tag-emilynews","tag-hyip","tag-hyipnews","tag-hyips","exalt-entry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why is Bitcoin crashing and will $112K be the final bottom? - EmilyNews<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/emilynews.com\/blog\/?p=53760\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why is Bitcoin crashing and will $112K be the final bottom? - EmilyNews\" \/>\n<meta property=\"og:description\" content=\"Bitcoin\u2019s drop below $113,000 reflects investors\u2019 worries about the US economy, stock markets and crypto, but the volatility does not end BTC\u2019s long-term bullish trend. 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