Bitcoin Hits Record High, Triggering Bull Trap Phenomenon

Bitcoin has reached a new all-time high near $124,400 in August 2025, marking a significant shift in the cryptocurrency market. This surge triggered a classic bull trap pattern, leading to rapid price reversals and impacting other cryptocurrencies like Ethereum, Solana, and numerous DeFi tokens. Analysts attribute this volatility to increased institutional investor activity, alongside sudden shifts in retail sentiment that created a temporary buying frenzy followed by heavy selling pressure.