Bitcoin Falls Below $120K Amid U.S. Policy Changes
Bitcoin's price fell below $120,000 this week, dropping from a record high of $124,457 on August 13 to $117,477 before stabilizing around $119,000. The 5% decline followed U.S. Treasury Secretary Scott Bessent's announcement ruling out further government Bitcoin purchases, resulting in $1 billion in leveraged liquidations.
Despite the downturn, on-chain data indicates potential for a rally, with exchange netflows at levels preceding past bull runs. Short-term holders are accumulating rather than selling, and the derivatives market shows bullish sentiment with increased trading volume and positive funding rates. Analysts suggest a breakout above $122,190 could lead to a retest of $124,457.
