Bitcoin (BTC) Holds Steady Amid Major US

In light of new U.S. economic policies, Bitcoin (BTC) has experienced some volatility but has largely held steady, with analysts suggesting a long-term positive outlook despite short-term market jitters.

Here’s a breakdown of the current situation:

Short-term Volatility: Recent news of new U.S. tariffs and a warning from the Federal Reserve about slowing growth have led to a sharp downturn in the

broader crypto market. Bitcoin saw a dip below $115,200 on Friday, August 1, which triggered significant liquidations of leveraged long positions.

The total global crypto market capitalization declined by nearly 4% in a single day, with many altcoins experiencing even steeper losses.

Key Support Levels: Analysts are watching the $115,000 level closely, as it is considered a key support zone for Bitcoin. If the price can hold above this level, the long-term uptrend is expected to remain intact. Some experts have identified a critical range between $111,000 and $115,000 as a crucial zone for potential bouncebacks if selling pressure continues.

Resilience and Long-Term Optimism: Despite the recent dip, Bitcoin closed July above $115,000, marking its highest-ever monthly close and demonstrating long-term resilience. Analysts point to signs of cautious optimism in the BTC options market, with a low Put-Call Ratio and visible call buildup suggesting bullish expectations. The continued institutional demand and inflows into spot Bitcoin ETFs are also cited as positive long-term drivers.

U.S. Policy and Crypto: The recent economic policies, including the new tariffs and the Federal Reserve’s stance on monetary policy, are creating market

uncertainty. Historically, such conditions have often led investors to move away from riskier assets, but some analysts believe that a cautious Fed could

eventually bolster confidence in cryptocurrencies. The current administration has also been seen as more “crypto-friendly,” with recent actions like the passage of the GENIUS Act for stablecoins and the establishment of a Strategic Bitcoin Reserve seen as positive developments for the industry.