Cryptocurrency Litecoin soars by 8% contrary to broader market decline, while Bitcoin fails to break through before reaching $116,000, according to Market Watch reports.
In the world of digital assets, the past week has been a rollercoaster ride for investors. Here's a recap of the key events that shaped the crypto market over the past few days.
Bitcoin's Recovery Stalled
Bitcoin's (BTC) price recovery stalled near the $116,000 mark due to a combination of macroeconomic headwinds and technical resistance. The Federal Reserve's decision to keep interest rates steady between 4.25% and 4.5% without signaling cuts disappointed investors, reducing risk appetite for assets like Bitcoin. This was compounded by strong US job market data reinforcing the Fed's hawkish stance, leading investors to prefer safer assets and pulling liquidity away from cryptocurrencies.
Despite these challenges, Bitcoin showed resilience, with surges near $116,850 after regulatory positive news, notably President Trump signing an executive order allowing digital assets in 401(k) retirement plans. On-chain data showed reduced selling pressure from short-term holders and signs of accumulation, supporting price stabilization around $116,000.
Other Major Cryptocurrencies
While Bitcoin's price paused near $116,000, other major cryptocurrencies performed positively. Ethereum (ETH) surged past $4,000, supported by high institutional and retail interest and optimistic regulatory developments. XRP showed technical bullish signals such as a golden cross, indicating a potential rally ahead.
Litecoin (LTC) defied the overall crypto market trend by posting gains while most altcoins were in the red. Litecoin surged by 8.5% to trade above $120, and Monero (MNT) posted significant gains, surging by 20% to almost $0.9.
Market Trends and Outlook
Despite the recent drop, the crypto market cap has generally held above $3.8 trillion since early August 2025 amid mixed signals indicating a consolidation phase with potential for further upside. However, most altcoins, including TON, ENA, XLM, HBAR, XRP, SUI, LINK, ADA, HYPE, BNB, DOGE, ETH, SOL, and TRX, are slightly in the red.
Investors looking to enter the crypto market can take advantage of exclusive offers from leading exchanges. Bybit is offering a $500 free position on any coin, and Binance is offering a $600 exclusive welcome offer for new accounts.
In conclusion, while Bitcoin's price recovery stalled due to macroeconomic and regulatory headwinds, positive regulatory developments and institutional adoption signals have helped stabilize Bitcoin and foster bullish sentiment in other top cryptocurrencies, suggesting a possible continuation of the broader crypto market recovery in the near term.
[1] CoinDesk. (2025, August 5). Bitcoin Drops Below $116,000 on Fed Rate Decision, Regulatory Uncertainty. Retrieved from https://www.coindesk.com/business/2025/08/05/bitcoin-drops-below-116000-on-fed-rate-decision-regulatory-uncertainty/
[2] Cointelegraph. (2025, August 6). Bitcoin price analysis: BTC/USD bulls defend $116,000, next key resistance at $120,000. Retrieved from https://cointelegraph.com/news/bitcoin-price-analysis-btc-usd-bulls-defend-116-000-next-key-resistance-at-120-000
[3] CoinDesk. (2025, August 7). Bitcoin Price Rises Above $116,000 on Positive Regulatory News. Retrieved from https://www.coindesk.com/business/2025/08/07/bitcoin-price-rises-above-116-000-on-positive-regulatory-news/
[4] Cointelegraph. (2025, August 8). Bitcoin price analysis: BTC/USD bulls face resistance at $116,000, next key support at $114,000. Retrieved from https://cointelegraph.com/news/bitcoin-price-analysis-btc-usd-bulls-face-resistance-at-116-000-next-key-support-at-114-000
[5] CoinDesk. (2025, August 9). Bitcoin Price Dips Below $116,000 as Market Awaits Clarity on Regulatory Front. Retrieved from https://www.coindesk.com/business/2025/08/09/bitcoin-price-dips-below-116-000-as-market-awaits-clarity-on-regulatory-front/
- The recovery of Bitcoin's price was momentarily stalled at $116,000 due to a mixture of macroeconomic factors and technical resistance, as the Federal Reserve withheld interest rate cuts and US job market data strengthened, causing investors to favor safer assets.
- In spite of these obstacles, Bitcoin exhibited resilience, with occasional surges near $116,850 following regulatory positive news, such as President Trump signing an executive order for digital assets in 401(k) retirement plans.
- While Bitcoin's price halted, other major cryptocurrencies like Ethereum, XRP, Litecoin, and Monero demonstrated positive performance, with Ethereum surpassing $4,000 and Litecoin posting gains above $120.
- Despite a recent drop, the overall cryptocurrency market capitalization remained above $3.8 trillion since early August 2025 as signs of consolidation emerged, hinting at potential upside in the future.
