3 Reasons Bitcoin Price Could Dip Below $100,000 in 2025
As we navigate the volatile world of cryptocurrency on this August 7, 2025, Bitcoin continues to capture headlines with its wild swings. Picture this: just like a rollercoaster that climbs high only to plummet unexpectedly, Bitcoin’s price has been testing new heights, but lurking risks could send it tumbling below that crucial $100,000 mark. From mounting macroeconomic pressures to slumping revenues for Bitcoin miners and a wave of cautious vibes among investors, these factors might spark a significant correction in BTC’s value. Let’s dive into why this could happen, drawing on the latest data and real-world insights to paint a clear picture.
Key Insights on Bitcoin’s Price Volatility
Even with some positive economic signals buzzing around, the latest looks at Bitcoin derivatives markets reveal a noticeable dip in investor enthusiasm for holding onto those recent gains. For instance, a recent pivot by mining firm Bit Digital toward Ether has sparked worries that others might follow suit, potentially dumping their BTC holdings. As of today, August 7, 2025, Bitcoin briefly slipped under $100,000 earlier this week amid escalating geopolitical tensions—think reports of heightened conflicts in the Middle East affecting global markets. But it bounced back to around $108,000 by mid-week, according to live trading data from major exchanges. Still, the mood in BTC derivatives has shifted to caution, hinting that traders aren’t as bullish on pushing higher.
Take a peek at the Bitcoin futures annualized funding rate—it’s a key indicator of market sentiment. Data from analytics platforms shows it sank to a seven-week low on Wednesday, even as prices climbed. In balanced markets, those holding long positions usually pay a fee to keep their leverage going, making negative rates a rare sight. This dip happened right as Bitcoin hit $108,000, which is intriguing. Instead of just dwelling on the fallout, like reduced appetite for leveraged bets, it’s worth exploring the roots of this bearish turn. A big piece ties back to the ongoing global trade tensions kicked off by the US back in April. While short-term deals have held things together, some are expiring soon—like the eurozone pact ending on July 9, based on recent White House updates.
US leadership has faced backlash for flip-flopping on trade talks, with reports tallying over 50 tariff policy shifts since the current administration began. This uncertainty is making investors jittery, fearing an escalation in the trade war that could ripple through crypto markets.
Trade Wars, AI Buzz, and Bitcoin Miner Struggles Weigh on Prices
Compounding the tension, the latest US GDP figures released last Thursday showed a 0.5% year-over-year drop in the first quarter, per official economic reports. Experts point to a swelling trade deficit as companies stockpile goods in anticipation of steeper tariffs. Yet, Bitcoin enthusiasts are scratching their heads because US small-cap stocks have stayed tough, while BTC hovers well shy of $112,000. Compare that to the Russell 2000 index, which tracks smaller firms outside the top 1,000—it’s rallied to a four-month peak, as per recent TradingView charts. Since many still view Bitcoin as a high-risk play, akin to betting on a stormy sea voyage, concerns over “overheated AI investments inflating valuations” are capping BTC’s upside.
Analysts from firms like Gartner have highlighted that a lot of agentic AI initiatives are just hype-fueled trials, often poorly executed, according to finance news outlets. This more guarded investor stance means we’re seeing some folks cashing out profits above $105,000, which feels like a natural pause in the climb.
On the mining front, risks are piling up from companies stacking Bitcoin on their books. A surprise came when Nasdaq-listed Bit Digital, a New York mining outfit, revealed plans to sell off its mining setup and BTC stash to buy into Ether instead. As of their March 31 report, they held 24,434 ETH and 417.6 BTC. This has folks worried that more miners might offload BTC, especially with mining revenues hitting a two-month bottom, as noted in recent CryptoQuant analyses. While broader economic vibes could still propel Bitcoin to fresh peaks—think central banks leaning toward easier money policies—the chance of a short-term slide under $100,000 feels very real.
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Aligning with Broader Trends and Latest Buzz
Tying into brand alignment, it’s fascinating how moves like Bit Digital’s reflect a strategic shift toward diversification, much like how savvy investors realign their portfolios during uncertain times. This isn’t just about switching assets; it’s about syncing with market realities to stay resilient. On the latest front, Google searches are buzzing with questions like “Why is Bitcoin price dropping in 2025?” and “Impact of trade wars on crypto,” reflecting widespread curiosity amid economic headlines. Over on Twitter, discussions are heating up around #BitcoinCrash fears, with posts from influencers citing recent US tariff announcements and AI market corrections as key drivers. Just yesterday, a viral thread from a prominent analyst highlighted official Fed statements on potential rate cuts, fueling debates on whether this could buoy BTC or exacerbate miner sell-offs.
To back this up, real-world evidence from economic reports shows how trade deficits have widened by 15% year-over-year, per the latest Commerce Department data, directly pressuring assets like Bitcoin. It’s like comparing a sturdy ship to a leaky boat—while small-cap stocks weather the storm thanks to domestic focus, BTC’s global ties make it more vulnerable. Despite these hurdles, the push for looser monetary policies worldwide, evidenced by central banks’ recent dovish tones, could still set the stage for Bitcoin highs, but not without the risk of a bumpy detour below $100,000.
This overview is shared for informational purposes only and shouldn’t be seen as legal or investment guidance. The thoughts here are independent and aim to spark thoughtful discussion on Bitcoin’s path ahead.
Frequently Asked Questions
Why might Bitcoin’s price fall below $100,000 soon?
Bitcoin could dip due to macroeconomic risks like trade wars and GDP slumps, combined with falling miner profits and cautious investor sentiment, as seen in recent derivatives data and mining firm shifts.
How do trade tensions affect Bitcoin?
Ongoing US trade wars create uncertainty, widening deficits and eroding confidence, which pressures risk assets like Bitcoin, much like how tariffs have historically impacted global markets.
What role do Bitcoin miners play in price corrections?
Miners facing low revenues might sell off holdings, as with Bit Digital’s Ether pivot, potentially flooding the market and driving prices down, based on current revenue trends from analytics reports.
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Debunking the AI Doomsday Myth: Why Establishment Inertia and the Software Wasteland Will Save Us
Editor's Note: Citrini7's cyberpunk-themed AI doomsday prophecy has sparked widespread discussion across the internet. However, this article presents a more pragmatic counter perspective. If Citrini envisions a digital tsunami instantly engulfing civilization, this author sees the resilient resistance of the human bureaucratic system, the profoundly flawed existing software ecosystem, and the long-overlooked cornerstone of heavy industry. This is a frontal clash between Silicon Valley fantasy and the iron law of reality, reminding us that the singularity may come, but it will never happen overnight.
The following is the original content:
Renowned market commentator Citrini7 recently published a captivating and widely circulated AI doomsday novel. While he acknowledges that the probability of some scenes occurring is extremely low, as someone who has witnessed multiple economic collapse prophecies, I want to challenge his views and present a more deterministic and optimistic future.
In 2007, people thought that against the backdrop of "peak oil," the United States' geopolitical status had come to an end; in 2008, they believed the dollar system was on the brink of collapse; in 2014, everyone thought AMD and NVIDIA were done for. Then ChatGPT emerged, and people thought Google was toast... Yet every time, existing institutions with deep-rooted inertia have proven to be far more resilient than onlookers imagined.
When Citrini talks about the fear of institutional turnover and rapid workforce displacement, he writes, "Even in fields we think rely on interpersonal relationships, cracks are showing. Take the real estate industry, where buyers have tolerated 5%-6% commissions for decades due to the information asymmetry between brokers and consumers..."
Seeing this, I couldn't help but chuckle. People have been proclaiming the "death of real estate agents" for 20 years now! This hardly requires any superintelligence; with Zillow, Redfin, or Opendoor, it's enough. But this example precisely proves the opposite of Citrini's view: although this workforce has long been deemed obsolete in the eyes of most, due to market inertia and regulatory capture, real estate agents' vitality is more tenacious than anyone's expectations a decade ago.
A few months ago, I just bought a house. The transaction process mandated that we hire a real estate agent, with lofty justifications. My buyer's agent made about $50,000 in this transaction, while his actual work — filling out forms and coordinating between multiple parties — amounted to no more than 10 hours, something I could have easily handled myself. The market will eventually move towards efficiency, providing fair pricing for labor, but this will be a long process.
I deeply understand the ways of inertia and change management: I once founded and sold a company whose core business was driving insurance brokerages from "manual service" to "software-driven." The iron rule I learned is: human societies in the real world are extremely complex, and things always take longer than you imagine — even when you account for this rule. This doesn't mean that the world won't undergo drastic changes, but rather that change will be more gradual, allowing us time to respond and adapt.
Recently, the software sector has seen a downturn as investors worry about the lack of moats in the backend systems of companies like Monday, Salesforce, Asana, making them easily replicable. Citrini and others believe that AI programming heralds the end of SaaS companies: one, products become homogenized, with zero profits, and two, jobs disappear.
But everyone overlooks one thing: the current state of these software products is simply terrible.
I'm qualified to say this because I've spent hundreds of thousands of dollars on Salesforce and Monday. Indeed, AI can enable competitors to replicate these products, but more importantly, AI can enable competitors to build better products. Stock price declines are not surprising: an industry relying on long-term lock-ins, lacking competitiveness, and filled with low-quality legacy incumbents is finally facing competition again.
From a broader perspective, almost all existing software is garbage, which is an undeniable fact. Every tool I've paid for is riddled with bugs; some software is so bad that I can't even pay for it (I've been unable to use Citibank's online transfer for the past three years); most web apps can't even get mobile and desktop responsiveness right; not a single product can fully deliver what you want. Silicon Valley darlings like Stripe and Linear only garner massive followings because they are not as disgustingly unusable as their competitors. If you ask a seasoned engineer, "Show me a truly perfect piece of software," all you'll get is prolonged silence and blank stares.
Here lies a profound truth: even as we approach a "software singularity," the human demand for software labor is nearly infinite. It's well known that the final few percentage points of perfection often require the most work. By this standard, almost every software product has at least a 100x improvement in complexity and features before reaching demand saturation.
I believe that most commentators who claim that the software industry is on the brink of extinction lack an intuitive understanding of software development. The software industry has been around for 50 years, and despite tremendous progress, it is always in a state of "not enough." As a programmer in 2020, my productivity matches that of hundreds of people in 1970, which is incredibly impressive leverage. However, there is still significant room for improvement. People underestimate the "Jevons Paradox": Efficiency improvements often lead to explosive growth in overall demand.
This does not mean that software engineering is an invincible job, but the industry's ability to absorb labor and its inertia far exceed imagination. The saturation process will be very slow, giving us enough time to adapt.
Of course, labor reallocation is inevitable, such as in the driving sector. As Citrini pointed out, many white-collar jobs will experience disruptions. For positions like real estate brokers that have long lost tangible value and rely solely on momentum for income, AI may be the final straw.
But our lifesaver lies in the fact that the United States has almost infinite potential and demand for reindustrialization. You may have heard of "reshoring," but it goes far beyond that. We have essentially lost the ability to manufacture the core building blocks of modern life: batteries, motors, small-scale semiconductors—the entire electricity supply chain is almost entirely dependent on overseas sources. What if there is a military conflict? What's even worse, did you know that China produces 90% of the world's synthetic ammonia? Once the supply is cut off, we can't even produce fertilizer and will face famine.
As long as you look to the physical world, you will find endless job opportunities that will benefit the country, create employment, and build essential infrastructure, all of which can receive bipartisan political support.
We have seen the economic and political winds shifting in this direction—discussions on reshoring, deep tech, and "American vitality." My prediction is that when AI impacts the white-collar sector, the path of least political resistance will be to fund large-scale reindustrialization, absorbing labor through a "giant employment project." Fortunately, the physical world does not have a "singularity"; it is constrained by friction.
We will rebuild bridges and roads. People will find that seeing tangible labor results is more fulfilling than spinning in the digital abstract world. The Salesforce senior product manager who lost a $180,000 salary may find a new job at the "California Seawater Desalination Plant" to end the 25-year drought. These facilities not only need to be built but also pursued with excellence and require long-term maintenance. As long as we are willing, the "Jevons Paradox" also applies to the physical world.
The goal of large-scale industrial engineering is abundance. The United States will once again achieve self-sufficiency, enabling large-scale, low-cost production. Moving beyond material scarcity is crucial: in the long run, if we do indeed lose a significant portion of white-collar jobs to AI, we must be able to maintain a high quality of life for the public. And as AI drives profit margins to zero, consumer goods will become extremely affordable, automatically fulfilling this objective.
My view is that different sectors of the economy will "take off" at different speeds, and the transformation in almost all areas will be slower than Citrini anticipates. To be clear, I am extremely bullish on AI and foresee a day when my own labor will be obsolete. But this will take time, and time gives us the opportunity to devise sound strategies.
At this point, preventing the kind of market collapse Citrini imagines is actually not difficult. The U.S. government's performance during the pandemic has demonstrated its proactive and decisive crisis response. If necessary, massive stimulus policies will quickly intervene. Although I am somewhat displeased by its inefficiency, that is not the focus. The focus is on safeguarding material prosperity in people's lives—a universal well-being that gives legitimacy to a nation and upholds the social contract, rather than stubbornly adhering to past accounting metrics or economic dogma.
If we can maintain sharpness and responsiveness in this slow but sure technological transformation, we will eventually emerge unscathed.
Source: Original Post Link

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