Bitcoin Freefall to IDR 1.84 Billion: Inflation, Import Tariffs, and Mass Liquidation are the culprits?

Jakarta, Pintu News – The price of Bitcoin (BTC) slipped below the USD 113,000 mark today, equivalent to IDR 1.84 billion (USD 1 = IDR 16,295), for the first time since early August 2025. This drop comes after setting a new record high of USD 124,128 (IDR 2.02 billion) the previous week.

According to a Decrypt report written by James Rubin, this drop is not just another technical correction. Market fears of higher-than-expected US inflation data and uncertainty over the direction of interest rate policy have pushed investors away from riskier assets like crypto.

US Inflation and Economic Data Triggers Panic

Investors are currently awaiting unemployment and manufacturing reports as well as Fed Chairman Jerome Powell’s remarks at the Jackson Hole Economic Symposium. Market sentiment was further depressed after July Consumer Price Index (CPI) data showed annual inflation reached 2.7%, above the Federal Reserve’s long-term target of 2%.

Not only that, core prices excluding food and energy also rose to 3.1%. In such a situation, many analysts consider it unlikely that the Fed will cut interest rates in the near future, so the pressure on risky assets such as cryptocurrencies is growing.

Also Read: Ethereum (ETH) Price Predicted to Surge to $15,000, What’s Driving This Increase?

Rising Treasury Yields and Pressure from the Government

BitBull Capital CEO, Joe DiPasquale, mentioned that “rising Treasury yields and strong economic data have reduced risk appetite in the market.” This dragged down the price of Bitcoin and altcoins such as Ethereum (ETH), XRP, and Solana (SOL), which also experienced a sharp correction.

The Trump administration also pressured the Federal Reserve to lower interest rates, but the majority of central bank officials remained firm in maintaining interest rates in the range of 5.25%-5.50%. New import tariffs and the ongoing trade war have also made market participants increasingly anxious about the long-term impact on US economic growth.

Liquidation of Leverage Positions Adds to Price Pressure

On the technical side, profit-taking after last week’s record highs accelerated the price decline. Juan Leon, an analyst with Bitwise Investments, told Decrypt that there was a “chain liquidation of leveraged positions” worth USD 559 million, including USD 487 million from long positions.

When the market falls, leveraged positions that cannot be supported will be automatically closed by the system. This creates a domino effect that accelerates price drops in a short period of time, which is often seen in highly volatile crypto markets.

Is This the End of the Bull Market?

Although the price drop looks sharp, analysts don’t consider it the end of the crypto bull market just yet. In fact, in a separate note cited by Decrypt, analysts from Bernstein still believe that Bitcoin’s bull run could continue until 2026 with a peak in 2027.

They argue that the US policy in favor of crypto and the accumulation of USD 160 billion of stablecoins on exchanges are signals that there is still a lot of “dry powder” ready to re-enter the market. Therefore, short-term pressure may not necessarily derail the long-term trend.

What Can Investors Learn?

Investors are advised not to make rash decisions based on short-term price volatility. Pay attention to macroeconomic data, monetary policy direction, and institutional capital flows in crypto. When volatility is high, the best strategy is to strengthen research, manage risk, and not rush into or out of the market.

In the fast-changing world of crypto, patience and discipline are two things that are more important than trying to guess the price peak or bottom.

Also Read: Dogecoin is the only meme coin in the top 25 – is it the king of meme coins?

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• James Rubin / Decrypt. Bitcoin Sinks as Concerns Over Inflation, Economic Data Mount. Accessed August 20, 2025.