Why did Bitcoin fall below $118,000 and what does the White House plan for crypto?

Bitcoin slipped below $118,000 on Thursday amid profit-taking and large-scale wallet moves, while traders turned cautious ahead of a White House crypto policy report due later this month and assessed evolving regulatory frameworks.

The world’s largest cryptocurrency last traded 0.6% lower at $117,780.9 as of 02:36 ET (06:36 GMT).

The token remained in a consolidation phase after surging to a record above $123,000 last week. Gains were tempered amid reported whale trades.

Meanwhile, other cryptocurrencies saw sharper losses, with XRP and Dogecoin leading declines after recent record highs.

White House to release crypto policy report this month

White House crypto adviser Bo Hines announced on X that the President’s Digital Asset Working Group has finalised its long‑awaited 180-day crypto policy report, set for public release on July 30.

The report, mandated by a January executive order, is expected to detail the amount of seized U.S. government-held Bitcoin and articulate how it might be managed.

In addition to the reserve outline, the working group is widely expected to propose a comprehensive regulatory framework.

Traders cautious, await crypto regulation progress 

Investors remain on edge despite the U.S. House’s recent approval of three major crypto bills.

Last week, President Donald Trump signed into law the U.S. GENIUS Act, establishing a federal regulatory framework for stablecoins. 

In addition to the GENIUS Act, the House of Representatives passed two other key bills. The CLARITY Act clarifies SEC and CFTC oversight, and the Anti‑CBDC Surveillance State Act is viewed as a pivotal step toward federal crypto regulation.

Still, many lawmakers saw potential gaps in consumer protection, and both the CLARITY and Anti‑CBDC acts await Senate review.

Investors were cautious amid evolving regulatory bills and waited for clearer direction to push the speculative asset for a breakout again.

Analysts also attributed the weakness to the breach of the key psychological level $118,000, which prompted automated selling. It added to downward pressure already building from profit-taking and broader market caution.

Markets also awaited the Federal Reserve’s upcoming policy meeting on July 30.