Bitcoin News Today: Bitcoin Falls Below $113K Triggering $113M in Long Liquidations

Bitcoin has fallen below $113,000 for the first time in over two weeks, triggering a $113 million liquidation of leveraged long positions in the process. The sharp correction followed a peak of $124,176, raising questions about the resilience of the ongoing bull market amid increasing macroeconomic uncertainty [1]. The price action reflects a broader shift in risk appetite, driven by concerns over U.S. trade policy, corporate AI underperformance, and regulatory scrutiny in the crypto space.

A key driver of the sell-off has been the reported U.S. Securities and Exchange Commission (SEC) investigation into Alt5 Sigma, a firm linked to World Liberty Financial, which recently partnered with Donald Trump’s foundation in a $1.5 billion deal. World Liberty raised $550 million through public token sales and has positioned itself as a decentralized finance (DeFi) and stablecoin platform. Eric Trump is set to join Alt5 Sigma’s board, adding to the regulatory and reputational risks for the broader market [1].

Simultaneously, a study from MIT’s NANDA research revealed that 95% of companies have failed to generate rapid revenue growth from AI initiatives, contributing to a 1.5% drop in the Nasdaq 100. The underwhelming results from AI-driven corporate strategies have dampened market optimism, particularly in tech-linked asset classes like crypto [1].

On the macroeconomic front, the U.S. imposed 50% import tariffs on 407 aluminum- and steel-containing products, raising concerns about inflationary pressures and supply chain disruptions. These measures have contributed to a broader risk-off sentiment, with investors shifting capital into safe-haven assets like gold. UBS has raised its gold price forecast to $3,700 per troy ounce by 2026, citing weak economic growth, Federal Reserve easing, and a weaker dollar as key drivers [1].

Bitcoin’s derivatives market has also signaled heightened fear, with the 30-day options delta skew surging to 12%, its highest level in four months. This metric, which measures the imbalance between put and call options, typically ranges between -6% and +6% under neutral conditions. A reading above 10% indicates extreme bearish sentiment, historically followed by sharp rebounds [1]. A similar spike in April 2025—when Bitcoin fell below $74,500—was followed by a 40% rally in the next month, suggesting a potential rebound could be on the horizon.

Despite the recent drop, analysts remain cautious rather than bearish. The 2025 market environment differs from the 2021 correction, which coincided with Fed tightening, while 2025 is approaching a more accommodative monetary policy. Expectations of Fed rate cuts and quantitative easing could provide support for Bitcoin in the medium term [7]. On-chain metrics also indicate the market is not yet overheated, with short-term holder SOPR (Spent Output Profit Ratio) below 1, historically a sign of potential buying opportunities [7].

Technical indicators suggest $112K could serve as a critical support level. If Bitcoin fails to hold above $114K, further declines into the $110K–$112K range are likely, aligning with previous support levels [4]. Analysts including Bynzantine General and Alex Kruger remain cautiously optimistic, noting that a firm bottom near $110K is plausible and that a larger correction appears unlikely at this stage [7].

Options data and market positioning also reflect a mixed outlook. While the 25 Delta Skew shows short-term bearish sentiment, the outlook over the next month is more balanced, particularly as key macroeconomic events—such as the July FOMC Minutes and Federal Reserve Chair Jerome Powell’s Jackson Hole speech—approach. These developments will be crucial in determining whether Bitcoin can stabilize above $110K or face further downward pressure [7].

Institutional buying and ETF inflows are being closely monitored as potential bullish signals. A breakout above $122K could set the stage for a push toward $128K, though such a move remains speculative at this point [9]. For now, the market remains in a fragile balance between technical vulnerabilities and macroeconomic tailwinds.

The downturn has also affected other major cryptocurrencies, including Ethereum (ETH) and XRP, with prices dipping amid leveraged liquidations and profit-taking. The synchronized decline across crypto and traditional equities highlights the deepening impact of macroeconomic uncertainty and growing risk aversion [10].

Whether $112K becomes the final bottom will depend on several factors, including the Federal Reserve’s next steps, the resolution of geopolitical tensions, and the strength of institutional demand. Until these uncertainties are addressed, Bitcoin’s path remains volatile and unpredictable.

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Source:

[1] Why is Bitcoin crashing and will $112K be the final bottom? (https://cointelegraph.com/news/why-is-bitcoin-crashing-and-will-112k-be-the-final-bottom)

[2] Bitcoin price prediction: BTC faces Fed watch, geopolitical risk and reversal signals (https://bravenewcoin.com/insights/bitcoin-btc-price-prediction-bitcoin-faces-fed-watch-geopolitical-risk-and-reversal-signals)

[3] Bitcoin price struggles to hold $115K, XRP reclaims $3 (https://99bitcoins.com/news/altcoins/live-latest-crypto-news-august-19-bitcoin-price-struggles-to-hold-115k-xrp-reclaims-3-best-altcoins-to-buy-right-now/)

[4] Bitcoin faces key support tests amid macroeconomic uncertainty (https://www.mitrade.com/au/insights/news/live-news/article-3-1048829-20250819)

[5] All eyes on this week’s Fed gathering after Bitcoin suffers pullback (https://www.forbes.com/sites/digital-assets/2025/08/18/all-eyes-are-on-this-weeks-fed-gathering-after-bitcoin-suffers-pullback/)

[6] Bitcoin drops 7% but analysts still expect a rebound (https://ambcrypto.com/bitcoin-drops-7-but-analysts-still-expect-a-rebound-not-a-crash/)

[7] Why is crypto down today? BTC, ETH, XRP, SOL altcoins dipping more (https://www.thecoinrepublic.com/2025/08/18/why-is-crypto-down-today-btc-eth-xrp-sol-altcoins-dipping-more/)

[8] Bitcoin rally under pressure as leverage and inflation crumble (https://www.ainvest.com/news/bitcoin-news-today-leverage-inflation-crumble-bitcoin-rally-volatile-correction-2508/)

[9] Bitcoin price weekly prediction (https://coindcx.com/blog/price-predictions/bitcoin-price-weekly/)

[10] Why are Bitcoin, Ethereum and XRP prices down today (https://coinstats.app/news/79ea223caa4828f7b6336f55e037618646541e83033adfbcfd34f27a0a9ca533_Why-are-Bitcoin-Ethereum-and-XRP-Prices-Down-Today-18th-Aug-2025)