Bitcoin News Today: Bitcoin's Big Sell-Off Hides a Surprising Battle Between Whales and ETFs

Bitcoin's price action has drawn attention from analysts and market participants as the cryptocurrency retreated from its all-time high of $124,176 to around $110,000 in early August 2025. The pullback coincided with a significant increase in Bitcoin futures open interest and a sharp decline in spot ETF inflows, signaling mixed investor sentiment. According to CoinGlass data, Bitcoin futures open interest surged to an all-time high of 762,700 BTC on August 26, a 13% increase from two weeks earlier, despite a 10% price drop since the market peak. This surge indicates continued trader engagement, though the $85 billion in open interest does not necessarily reflect optimism due to the balanced nature of long and short positions in futures markets [1]. The annualized premium for Bitcoin 2-month futures stood at a neutral 8%, up from 6% the previous week, but it has not exceeded the 10% threshold in over six months, a sign that even record highs have not ignited widespread bullishness [1].

The market correction also saw significant outflows from exchange-traded products (ETPs), with a total of $1.43 billion withdrawn from crypto ETPs last week, according to CoinShares. This marked the largest net outflow since March 2025 and was attributed to increasingly polarized investor sentiment regarding U.S. monetary policy [4]. Spot Bitcoin ETFs recorded over $1.17 billion in weekly outflows, the highest since early March, with Ethereum ETFs experiencing their second-largest outflow on record at $430 million on Tuesday alone [6]. James Butterfill, head of research at CoinShares, noted that the outflows were driven by early-week pessimism around the Federal Reserve’s stance but were partially offset by a shift in sentiment following Jerome Powell’s Jackson Hole address, which was interpreted as more dovish than expected [4]. However, the impact on Bitcoin ETPs was muted, with over $1 billion in outflows recorded for the week, compared to $440 million in Ethereum losses [6].

On-chain data further highlights the bearish pressure on Bitcoin. A 5-year dormant whale sold $11 billion worth of Bitcoin, redirecting proceeds into Ether spot and futures via Hyperliquid. This large-scale sell-off coincided with broader market weakness and raised concerns about potential cascading liquidations if the price falls below $110,000 [1]. Perpetual futures funding rates for Bitcoin dropped back to 11% after a brief uptick, remaining in a neutral range of 8–12%. Meanwhile, put options maintained a premium over calls, with puts trading at a 10% premium over calls, reflecting persistent bearish sentiment [1]. The recent liquidation event, which wiped out $284 million in long positions, underscored the market's volatility and the risk of leveraged positions, especially in the context of a broader pullback [1].

Analysts are closely monitoring the $105,000 level as a critical support threshold. Onchain data shows that mid-size wallets, particularly those holding 10–100 BTC, have shifted into distribution mode, contributing to the downward pressure on the price. The 100–1,000 BTC cohort, however, remains split between accumulation and distribution, with $105,000 acting as a key support zone. If the price breaks below this level, the lack of dense cost support between current levels and $90,000 could accelerate the decline [8]. Realized price data for Bitcoin also reveals a wide gap between short-term holders, who are anchored near $111,900, and longer-term holders, with cost bases closer to $89,000. This divergence suggests that short-term positioning is heavily concentrated near recent highs, increasing the risk of a deeper correction if bearish momentum continues [8].

Despite the bearish outlook, some signs of optimism exist. Japanese investment firm Metaplanet announced the purchase of an additional 103 BTC, bringing its total holdings to 18,991 BTC [9]. Santiment data also indicates that Bitcoin's 30-day Market Value to Realized Value (MVRV) metric is approaching a historical reversal zone, suggesting that the asset may be undervalued. The MVRV reading currently stands at -3.37%, close to the -4% threshold seen in previous trend reversals. Technical indicators like the 100-day Exponential Moving Average (EMA) have provided recent support, but the RSI and MACD suggest bearish momentum [9]. If Bitcoin fails to reclaim $116,000, the next major support level may be found at $103,688, the 200-day EMA. A sustained move below $110,000 could trigger further declines toward the $92,000–$89,000 range [8].

The ongoing market dynamics highlight a complex interplay of technical, onchain, and macroeconomic factors. While short-term bearish sentiment dominates, the potential for a rebound remains if ETF inflows resume and broader market conditions stabilize. Investors and analysts remain watchful, with key support levels and investor behavior likely to dictate the next phase of Bitcoin’s price action.

Source:

[1] Bitcoin futures demand rises even as BTC sells off (https://cointelegraph.com/news/bitcoin-futures-demand-rises-even-as-btc-sells-off-what-gives)

[2] Crypto ETPs post $1.4B losses amid recent Bitcoin, Ether (https://cointelegraph.com/news/crypto-funds-1-4-billion-outflows-bitcoin-ethereum)

[3] Record ETP Outflows Shake Bitcoin And Ethereum (https://www.cointribune.com/en/record-etp-outflows-shake-bitcoin-and-ethereum/)

[4] ETPs Post $1.4B Outflows as Bitcoin, Ethereum Tumble (https://coinmarketcap.com/academy/article/etps-post-dollar14b-outflows-as-bitcoin-ethereum-tumble)

[5] Bitcoin Correction Risks Deepen With $105000 As Critical (https://www.mitrade.com/insights/news/live-news/article-3-1067869-20250826)

[6] Bitcoin holders 'distribute' as $105K becomes BTC's last (https://cointelegraph.com/news/bitcoin-holders-distribute-as-dollar105k-becomes-btc-s-last-stronghold)

[7] Bitcoin Price Forecast: BTC slides as whale sell-off (https://www.fxstreet.com/cryptocurrencies/news/bitcoin-price-forecast-btc-slides-as-whale-sell-off-outweighs-powells-dovish-remarks-202508251044)