Bitcoin, the world’s largest cryptocurrency, has slipped back to $117,000, marking a 3.9% drop after it soared past a record high of over $122,700 earlier this week. That pullback hasn’t gone unnoticed across the broader crypto landscape either. Major altcoins—like Ethereum, Dogecoin, and XRP—have taken a hit too, with some falling by as much as 10%. This latest bout of volatility is landing right after a period of impressive gains for digital assets, largely propelled by institutional momentum and a more favorable regulatory backdrop in the US.
Let’s break down what’s happening:
- Bitcoin’s now trading at $117,000, down 3.9% from its recent peak of $122,700.
- Altcoins like Dogecoin, XRP, and Ethereum have each dropped as much as 10%.
- Long-term holders cashing out profits have been a key factor behind Bitcoin’s recent slide.
- The crypto market cap has crossed $3.8 trillion, outpacing most traditional asset classes.
- Regulatory clarity in the US and continued inflows into Bitcoin ETFs have been driving forces behind the recent rally.
Bitcoin’s run-up to its all-time high didn’t happen in a vacuum. It was supported by a mix of factors, especially increasing adoption through Bitcoin ETFs and a more accommodating regulatory stance. The US Securities and Exchange Commission gave the green light to several Bitcoin ETFs back in January 2024. That was a pivotal moment. It opened the door for a broader group of investors to jump in—without actually holding Bitcoin themselves.
BlackRock’s Bitcoin ETF is a standout example. It’s seen explosive growth, with assets under management ballooning to $76 billion. That’s a $50 billion jump just since July 2024. To put that in perspective, it took gold ETFs 15 years to hit similar milestones.
At the same time, new legislation—like the GENIUS (Guiding and Establishing National Innovation for US Stablecoins) Act of 2025—has laid out clearer rules for stablecoins. That clarity has helped legitimize the crypto space even further, and it’s come at a time when the US dollar has shown some weakness. Bitcoin, in particular, has increasingly been seen as a hedge, especially with the dollar down over 10% against it so far in 2025.
But here’s where it gets interesting. The recent dip in Bitcoin’s price? That appears to be mostly about profit-taking. According to Glassnode, a significant chunk of the selling came from long-term holders—those who’ve had their coins for more than 155 days. They were behind 56% of the profit-taking activity, realizing around $1.96 billion in gains. That wave of selling introduced a surge of market volatility and led to over $675 million in liquidations in just a single day, hitting long traders especially hard.
Altcoins bore the brunt of the downturn too. Dogecoin, for instance, dropped 8%, sliding from $0.21 to $0.18. It’s one of the steeper declines among major tokens. XRP also dropped 8%, falling from $3.02 to $2.78. It hit strong resistance around the $3.00 mark despite climbing earlier. Ethereum had a bit of a seesaw moment—it almost touched $3,100 but quickly pulled back to the psychologically key $3,000 level, wiping out much of its Monday surge.
Altcoins often follow Bitcoin’s lead, and they tend to move even more sharply in either direction due to their relatively higher volatility. It’s a familiar pattern: when Bitcoin stumbles, the rest often tumble harder.
Still, not everyone is alarmed. In fact, a lot of market watchers see this pullback as healthy—more of a pause than a reversal. The market cap for all cryptocurrencies has now surpassed $3.8 trillion, which is no small feat. Many analysts remain cautiously optimistic. They point to steady institutional interest, ongoing tech innovation, and increasing acceptance of crypto as part of a bigger financial picture. Some even project that Bitcoin could hit $150,000 by Q3 2025, assuming ETF inflows continue and macroeconomic conditions remain broadly supportive.
At the end of the day, the crypto market is still maturing. And while price swings are a given in this space, the overarching trends—broader adoption, clearer regulation, and increased mainstream interest—paint a fairly promising long-term picture.
FAQs:
Q1: What caused Bitcoin to retreat to $117,000?
A1: The primary driver was profit-taking by long-term investors. Glassnode data shows many of these holders, who had owned Bitcoin for more than 155 days, sold off for a combined gain of nearly $2 billion.
Q2: How does Bitcoin’s price movement affect altcoins?
A2: Altcoins typically mirror Bitcoin’s direction but often move more dramatically. When Bitcoin drops, altcoins usually drop more, due to their higher volatility and correlation with Bitcoin’s market behavior.
Q3: What are Bitcoin ETFs and how do they influence its price?
A3: Bitcoin ETFs let investors gain exposure to Bitcoin without directly owning it. The approval of these ETFs brought new institutional money into the space, boosting demand and contributing to the recent price surge.
Q4: Is the current market downturn expected to continue?
A4: It’s hard to say for sure, but many analysts believe this is just a short-term correction. The longer-term outlook remains optimistic, backed by strong institutional interest and a more defined regulatory environment.
