What Is the BTC Price in USD? Why Is BTC Dropping?
Bitcoin (abbreviated as BTC) is the world’s first decentralized cryptocurrency based on blockchain technology, created in 2009 by a developer using the pseudonym “Satoshi Nakamoto.” Its core design eliminates the intermediary role of traditional financial institutions, enabling peer-to-peer transactions through a distributed ledger and consensus mechanism. The total supply is capped at 21 million coins, with scarcity being one of the foundations of its value. Currently, approximately 19.88 million coins are in circulation, and its market capitalization remains the highest among crypto assets, exceeding $2.1 trillion. As digital gold, it serves both as a payment tool and as an asset allocation choice for institutions and individuals against inflation, particularly during periods of dollar volatility, its “safe-haven property” is widely discussed.
Recent Price Dynamics and Market Performance
As of July 7, 2025, the real-time BTC / USD quote is $108,348.23, with a slight increase of 0.10% over the past 24 hours, but the weekly trend remains under pressure. In the past 7 days, its price has fluctuated widely between $105,157.40 and $110,541.46, reflecting increased market divergence. This round of decline began from the March high of $109,287, dipping to $85,657 in April, a drop of over 21%, mainly driven by three factors:
- Policy Shock: The Trump administration’s imposition of global tariffs triggered stagflation fears, leading to a sell-off of risk assets;
- Stronger Dollar: The rising dollar index suppresses BTC priced in dollars;
- Miner Selling Pressure: Miner reserves decreased from 1.809 million BTC to 1.806 million BTC, increasing short-term supply.
Additionally, the Bitcoin spot ETF saw a weekly net inflow of +$1.5 billion, indicating institutional willingness to accumulate at lower prices, providing price support.
Technical Market Dynamics and Short-Term Predictions
The current price is at a critical watershed. Based on the 4-hour chart analysis:
- Support area: around 106,000 USD, if held steady, may trigger a rebound;
- Resistance area: 112,166 USD, has failed to break through multiple times recently.
The indicator signals present contradictions: the RSI is neutral (51.4), indicating an unclear direction, while the MACD histogram remains red, highlighting insufficient upward momentum. Two scenarios have a higher probability:
- Bullish path (moderate probability): After stabilizing above 106,000, it will target 110,500, and if it breaks through the resistance level, the goal will be in the range of 114,500 - 116,000;
- Bearish path (medium-high probability): Falling below 106,000 will lead to a drop to 102,000, and even 98,000.
Investors are advised to closely observe breakout signals and verify trend validity in conjunction with changes in trading volume.
Long-term Value Drivers and Industry Evolution
Despite severe short-term fluctuations, the long-term logic of Bitcoin remains fundamentally unshaken:
- Regulatory Clarity: International organizations like the IMF are promoting the construction of policy frameworks. For instance, although El Salvador has canceled BTC’s legal tender status, it still increased its holdings to 6,055 coins, indicating national recognition of its reserve attributes;
- Technological Iteration: Protocol upgrades (such as Taproot) enhance privacy and efficiency, strengthening network effects;
- Deepening Macro Hedging Role: The trade war has raised expectations for dollar depreciation. Historical data shows that BTC often has a negative correlation with the dollar, highlighting its currency substitution function similar to gold;
- Institutional Entry Expansion: Compliant products like spot ETFs continue to attract traditional capital, with a capital inflow of $1.5 billion in 7 days as an example.
The future market will be more focused on projects with solid fundamentals, and Bitcoin, with its most extensive node network, highest hash power security, and scarce issuance mechanism, still occupies a core position in the ecosystem.
The market correction period is also a period for positioning. Bitcoin will not be killed by short-term policies or emotions; its resilience lies in its absolute scarcity written in code and the immutability protected by millions of nodes worldwide—this is the ultimate essence of digital gold.
