Bitcoin Drops 3.2% After Record Surge as Investors Cash Out

After surpassing the $123,000 mark, Bitcoin faces a sharp correction driven by profit-taking.

Contents

Profits
Support
Outlook

Profits

Record Gains Trigger Investor Selling

Bitcoin fell 3.2% to $117,386 as of midday Tuesday in Singapore, marking its largest decline in over three weeks. The drop came after the cryptocurrency surged past $123,000 on Monday, fueled by optimism surrounding a potential new U.S. regulation on digital assets—legislation that could support President Donald Trump’s pro-crypto agenda.

The recent surge was also bolstered by improving risk appetite across markets, with U.S. stocks nearing record highs amid easing concerns about the economic impact of Trump’s renewed trade war.

Support

Natural Correction and Key Technical Level at $114,000

The decline extended to other cryptocurrencies as well. Ethereum dropped 1.4%, while Solana and XRP each lost nearly 2%. Analysts described the pullback as a normal technical correction following a sharp rally.

Stefan von Haenisch of BitGo noted that the market is experiencing a “typical retracement,” suggesting that the $114,000 level serves as a key support zone for Bitcoin—one that previously triggered significant short-covering during earlier price rallies.

Outlook

Cautious Optimism Amid Market Volatility

Despite the recent decline, many analysts remain bullish on Bitcoin’s long-term prospects, especially given the rise in institutional interest and the potential for clearer digital asset regulations.
However, the market continues to face short-term volatility and sharp corrections, with heightened sensitivity to political and regulatory developments.

In light of this, investors are advised to closely monitor key support and resistance levels, and to approach the market with a high degree of caution in the near term.

Bitcoin Drops 3.2% After Record Surge as Investors Cash Out

Bitcoin Drops 3.2% After Record Surge as Investors Cash Out

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