BTC Price – Bitcoin (BTC) has encountered turbulence, consolidating around $117,000 in August 2025 after a rapid surge to $122,838 in July. The cryptocurrency’s price faces headwinds from anticipated U.S. tariffs under President Donald Trump’s administration, prompting investors to lock in profits. Despite these challenges, Bitcoin’s resilience as a macro hedge continues to draw institutional interest.
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Trump’s Tariff Plans Spark Uncertainty
President Trump’s announcement of sweeping trade tariffs, expected to take effect in August 2025, has introduced uncertainty into financial markets, including Bitcoin. Investors fear that tariffs could disrupt global trade, impacting traditional markets and causing a ripple effect on cryptocurrencies.
Bitcoin’s price dipped from its July peak as some traders sold off holdings to mitigate risks. However, analysts like Roshan Roberts of OKX US argue that BTC remains a hedge against trade tensions, as it operates independently of fiat currencies.
Technical Support Levels in Focus
Technical analysis indicates that Bitcoin’s price is testing key support levels. The $107,000 mark, aligning with the 50-day moving average and past highs, is seen as a critical support zone. Should this level break, traders are eyeing $100,000 as the next line of defense, a range that held firm in late 2024.
Despite the consolidation, Bitcoin’s relative strength index remains below overbought levels, suggesting room for recovery if momentum returns. A potential breakout above $120,000 could target $146,400, a 32% increase from current levels.
Institutional Demand Bolsters BTC
Despite tariff-related concerns, institutional adoption continues to support Bitcoin’s price. In 2025, 160 publicly traded companies hold BTC on their balance sheets, up from 64 in 2024. Firms like Nakamoto and Twenty One Capital have led the charge, with the latter holding 43,514 BTC.
U.S. spot Bitcoin ETFs now manage $150 billion in assets, closing the gap with gold’s $198 billion. This institutional influx, coupled with Trump’s pro-crypto policies, underpins Bitcoin’s long-term bullish outlook.
Impact of 401(k) Crypto Inclusion
Trump’s executive order on August 7, 2025, allowing Bitcoin in 401(k) retirement accounts, has fueled optimism. The order, directing regulatory updates to facilitate crypto investments, could unlock trillions in retirement capital.
Analysts estimate that even a 1% allocation of the $8 trillion 401(k) market could drive $80 billion into BTC, pushing its price higher. This policy shift has reinforced Bitcoin’s status as a maturing asset class, despite short-term tariff jitters.
Market Sentiment and Future Outlook
While profit-taking has slowed Bitcoin’s momentum, bullish sentiment persists. The funding rate for BTC perpetual futures remains positive, indicating sustained demand for long positions.
Options traders on Deribit are betting on Bitcoin reaching $140,000 to $150,000 by year-end, reflecting confidence in its trajectory. However, the looming tariffs pose a risk, and a drop below $82,400 could see BTC test $70,000. For now, Bitcoin’s ability to hold above key support levels will determine its near-term path.
Bitcoin’s consolidation near $117,000 reflects a tug-of-war between tariff-related fears and robust fundamentals. As institutional adoption and policy support grow, BTC remains well-positioned for potential new highs, provided it navigates the current economic uncertainties.
