Why Did Bitcoin Price Fall Today? and What’s Next

• The Bitcoin price drives a steady recovery within the rising wedge pattern, but a breakdown risk looms.
• U.S. Treasury Secretary Scott Bessent recently clarified the government’s position on Bitcoin reserves, stating that they will not be purchasing new Bitcoin.
• Higher-than-expected PPI data accentuate inflationary pressure on the U.S. market, reducing the possibility of an interest rate cut in September.

The pioneer cryptocurrency Bitcoin takes a sharp dive of over 4.6% during Thursday’s market session to trade at $117,800. The selling pressure came after U.S. Treasury Secretary Scott Bessent stated that the government would not purchase new BTC for its reserve, dampening market sentiment. The bearish momentum gained traction as the higher-than-expected July U.S. Producer Price Index (PPI) reduced investors’ expectations for an interest rate cut in September. The technical analysis of the Bitcoin price reveals no relief, indicating a bearish reversal pattern that signals the risk of a potential correction.

U.S. Treasury Comments and PPI Data Sparks BTC Sell-Off

On Thursday, August 14th, the Bitcoin price took a sharp bearish reversal of over 4.6% just hours after hitting a new high of $124,517. The selling pressure followed a recent comment from U.S. Treasury Secretary Scott Bessent during an interview with Fox Business, stating that the government is “not going to be buying” Bitcoin for its strategic reserve. 

“We are going to use confiscated assets and continue to build that up,” Bessent added later. “We’re going to stop selling that.”

The U.S. government’s position on Bitcoin reserves has likely disappointed Bitcoin investors, triggering a sudden drop in price.

The bearish momentum further accelerated as the U.S. July PPI annual rate accelerated to 3.3%, notably surpassing the expected 2.5%, marking the highest level since February. Moreover, the July PPI jumped 0.9% month-over-month, the largest increase since June 2022.

The hotter-than-expected numbers indicate the inflationary pressures were stronger and more persistent than anticipated. Just prior to the PPI data, the investors were optimistic for a potential interest rate cut on Tuesday.

However, the strong PPI data indicate persistent inflation, suggesting that the Fed may maintain higher rates for a longer period. This less dovish outlook on monetary policy can negatively affect the broader crypto market, as tighter liquidity conditions may limit investment appeal in volatile assets like Bitcoin.

However, the broader sentiment surrounding Bitcoin is bullish as factors like ETF inflow, corporate adoption, and whale accumulation continue to maintain a high demand outlook.

Also Read: Ethereum Price to Hold $4,000 as Corporate Adoption Grows

Bitcoin Price Eyes Next Rebound Within Wedge Pattern

Following the intraday sell-off, the Bitcoin price currently trades at $117,800, and the market cap stands at $2.34 trillion. This pullback has brought the asset less than 2% short of retesting the support trendline of the rising wedge pattern. 

Since March 2025, the coin price has been actively resonating within the pattern’s two trendlines, validating its credibility to influence potential trend movement. According to past performance, the price retest of the bottom trendline has recuperated the bullish momentum in price to drive a rally towards the upper boundary.

The momentum indicator ADX (Average Directional Index) at 20% hints that the current momentum is far from exhaustion. Thus, the BTC price could retest the lower trendline at $116,564 to build sufficient momentum for a targeted leap to $132,800.

On the contrary, if the selling pressure at the current high of $124,500 persists, the sellers could force a breakdown below the pattern’s support. If materialized, the Bitcoin price could enter a deeper correction.

Also Read: Why Chainlink Price Is Set For A Brief Pause Before $30 Rally