Bitcoin Price Drops to $115K After Record High: What’s Next for the Market?

Bitcoin Pulls Back After Fresh All-Time High

The new trading week opened with volatility as $Bitcoin slid from its recent all-time high of $124,496 back down to $115,000, a drop of nearly 8% from peak to trough. At its lowest point, Bitcoin touched $114,700 before stabilizing around the $115K zone.

BTC/USD 1-hour chart - TradingView

This correction followed a surge that marked Bitcoin’s fourth new high this year, highlighting both the strength of the overall uptrend and the sharp reactions the market can face when sentiment turns cautious.

Liquidations Hit as Macro Concerns Weigh

The retracement came alongside a wave of forced liquidations that swept through the crypto market. More than $500 million in positions were cleared within 24 hours, with both Bitcoin and Ethereum leading the sell-off.

These liquidations were triggered as leveraged traders were forced to exit their positions, adding downward pressure to the market and accelerating the decline.

Ethereum and Altcoins Follow

$Ethereum mirrored Bitcoin’s weakness, sliding by about 4% to $4,283 after coming close to its record of $4,800 last week. The sell-off quickly spread across the broader crypto market, with major altcoins retracing recent gains. This synchronized decline suggests that the current pullback is not isolated to Bitcoin but rather reflects broader caution across the entire crypto sector.

Total crypto market cap in USD excluding BTC - TradingView

Macro Headwinds and Market Sentiment

The sell-off comes as investors reassess the macroeconomic environment. Fresh inflation data has raised questions about potential shifts in central bank policy, creating uncertainty for risk assets like crypto.

For many traders, this month was already expected to be choppy. August has historically been a weaker month for financial markets, with reduced liquidity often amplifying swings. As a result, even strong momentum from earlier rallies is now facing resistance from macro-driven sentiment.

Crypto Prediction: Healthy Pullback or Deeper Correction?

Despite the sharp drop, many view the retreat as a healthy cooldown in an otherwise strong uptrend. Corrections after major highs often allow the market to reset leverage, rebuild support zones, and prepare for the next leg higher.

The key levels to watch remain $115K support for Bitcoin and $4,200 for Ethereum. A decisive break below these thresholds could open the door to further losses, but holding them may signal consolidation before another attempt at the highs.

Looking ahead, all eyes will be on upcoming macroeconomic updates and how investors balance risk appetite against the strong institutional interest that has supported Bitcoin and Ethereum in recent months.