Why Is Bitcoin Dropping This Week? What's Behind the Move
Bitcoin's opening price moved lower on each trading day this week, with its daily, weekly, monthly and yearly trends all turning negative as of Thursday 13 August, according to Yahoo Finance reporting. The move comes as crypto traders weigh two competing forces: continued uncertainty around the Strait of Hormuz, and economic data suggesting US inflation cooled further in July - a combination that's left bitcoin trading in a narrower range than the highs it touched earlier in the month.
This article explains what's actually moved this week, why bitcoin is sensitive to these particular headlines, and how it compares with a genuine crash. It's informational content - not a prediction of where prices go next.
Key takeaway
- Bitcoin's price trend turned negative this week, trading in the region of $63,500-$64,600 across various sessions - down from highs above $65,000 earlier in the month.
- Two forces are pulling in different directions: Strait of Hormuz uncertainty (risk-off) and cooling US inflation data reducing expectations of a September Fed rate rise (typically risk-on for crypto).
- Ethereum has moved in a similarly narrow, largely rangebound pattern this week, holding mostly between $1,878 and $1,915.
- This is a multi-day pullback, not a single dramatic crash - bitcoin has seen considerably sharper single-day moves earlier in 2026.
- Cryptoassets are highly volatile and largely unregulated, with no consumer protection, and tax on profits may apply.
Bitcoin's Price Action This Week
Bitcoin opened at $64,848.91 on Monday 10 August, then moved lower on each subsequent trading day this week, opening at $63,547.05 on Wednesday and $63,410.39 on Thursday 13 August, according to Yahoo Finance's daily bitcoin and ethereum price tracker. That's a modest single-week move in percentage terms, but notable because - for the first time in weeks - bitcoin's daily, weekly, monthly and yearly trend lines all pointed the same direction: down.
It's worth flagging that exact prices vary slightly between reporting sources and the moment a snapshot is taken. Separate reporting from crypto-focused outlet Nexo put bitcoin closer to $63,700-$64,000 on the same Thursday, while other trackers cited intraday moves toward $64,194 earlier in the week - differences that reflect timing and data source rather than any single 'correct' figure. Bitcoin's all-time high remains $126,198.07, reached on 6 October 2025, according to Yahoo Finance data.
~$63,500
BTC this week
~$1,880
ETH this week
~$2.18tn
Total crypto market cap
Why Bitcoin Is Falling Right Now
Middle East Tensions and the Strait of Hormuz
Continued disruption around the Strait of Hormuz has kept a degree of risk-off sentiment in markets generally. As long as shipping through the strait remains constrained and no broader resolution is reached, analysts cited by Yahoo Finance suggest it will be difficult for a risk-based asset like bitcoin to sustainably reclaim the $65,000 range it touched earlier this month.
US Inflation Data and Fed Rate Expectations
Working in the opposite direction, US producer price data released Thursday came in softer than expected on every measure - the annual rate cooled to 4.7% from 5.5%, below consensus, following an in-line consumer price reading earlier in the week, according to market reporting from Nexo. Softer inflation data typically reduces the odds of a Federal Reserve rate rise, which tends to support risk assets including crypto, since bitcoin pays no yield and becomes relatively more attractive when rates are expected to stay lower for longer. The net effect this week has been a market pulled in two directions at once, rather than a one-way move.
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How Ethereum and Other Major Tokens Are Reacting
Ethereum has traded in a narrow range this week, largely holding between $1,878 and $1,915, according to Nexo, TheStreet Crypto and Sunday Guardian Live reporting - showing limited momentum either way as traders reassess the impact of the softer inflation data. One intraday figure from a separate tracker briefly showed ETH closer to $1,983 on Thursday morning, but as that print wasn't corroborated by the other sources reviewed for this article, the more consistently reported $1,878-$1,915 range is used here. Other large tokens have shown more differentiated moves: reporting from crypto markets outlet Nexo noted one altcoin, Hyperliquid's HYPE, added more than 3% in a single session even as the broader altcoin complex struggled for direction, illustrating that not every token moves in lockstep with bitcoin.
How UK Investors and Traders Are Responding
UK residents get exposure to bitcoin's price in two broad ways: buying and holding the asset directly through a cryptocurrency exchange, or trading price movements via a crypto CFD on a regulated trading platform, which allows a trader to seek to profit from price falls as well as rises but carries a materially higher risk profile due to leverage. Losses can exceed your initial deposit when trading with leverage. Traders new to crypto CFDs can practise first on a demo account before committing real funds, and should familiarise themselves with risk management tools such as stop-loss orders. Neither approach removes the underlying volatility risk - cryptoassets are highly volatile and largely unregulated, with no consumer protection.
Is This a Bitcoin Crash or a Normal Correction?
Calling this week's move a 'crash' would overstate what's happened. A crash typically implies a sudden, severe single-day collapse; this week's move has been a gradual multi-day drift lower of around 2% across four sessions. For context, bitcoin's all-time high was $126,198.07, reached on 6 October 2025, according to Yahoo Finance - meaning this week's price of around $63,500 sits roughly 50% below that peak, a gap that reflects bitcoin's broader 2026 trading range rather than this week's move specifically. Past performance is not a reliable indicator of future results, and nothing in this article should be read as a signal that a rebound - or a further fall - is more likely.
FAQ
Will bitcoin recover?
Nobody can say with certainty. Bitcoin's price depends on a wide range of factors including Fed policy expectations, geopolitical developments, and broader risk sentiment, all of which can shift quickly. This article describes what has already happened; it is not a forecast of future performance.
Is now a bad time to buy bitcoin?
This is informational content, not personalised advice. Cryptoassets are highly volatile, and any decision to buy or sell should reflect an individual's own circumstances, risk tolerance and research - not a single week's price move.
Why does bitcoin react to US inflation data?
Bitcoin, like many risk assets, tends to react to changes in expectations for US interest rates. Lower expected rates typically make non-yielding assets like bitcoin comparatively more attractive, while higher expected rates tend to have the opposite effect.
Is crypto regulated in the UK?
Cryptoassets are largely unregulated in the UK, meaning consumers do not have the same protections as with FCA-regulated products such as investments held in an ISA. Tax on crypto profits may still apply - check current guidance at gov.uk.
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Tax on cryptoasset profits may apply and depends on individual circumstances - check current guidance at gov.uk.
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