Bitcoin News Today: Whales and Bids Drive Bitcoin's Volatile Descent Below $113K

Bitcoin price has fallen to a 17-day low as analysts point to potential manipulation and market volatility tied to liquidity conditions and macroeconomic uncertainty. As of the Wall Street open on Wednesday, the price of BTC/USD dipped below $113,000, with bears continuing to take out bid liquidity on major exchanges. Data from platforms like CoinGlass and TradingView revealed that price action was being influenced by liquidity clusters near $120,000 and a local support level at $112,000. Popular trader Daan Crypto Trades noted that liquidity has been “swept” in both directions over the past six weeks, increasing the likelihood of further price fluctuations around key levels.

The potential for artificial price influence has drawn attention to the actions of large market participants. Keith Alan, co-founder of Material Indicators, highlighted the presence of “Spoofy the Whale” and “Notorious B.I.D.”—terms he coined to describe entities that may be moving bid liquidity downward to drive price lower. Alan emphasized that these behaviors, if intentional, could be seen as a form of market manipulation. Meanwhile, commentator TheKingfisher warned that further downside in BTC could trigger a “gradual bleed” in altcoin markets, with altcoins potentially experiencing 10–30% price drops in the event of a 5% BTC decline. Despite these concerns, some analysts remain cautiously optimistic. Rekt Capital drew parallels between current price action and previous bull market corrections in 2017 and 2021, both of which were followed by all-time highs.

Macroeconomic uncertainty, particularly around the Federal Reserve’s upcoming Jackson Hole symposium, has added to market jitters. Investors are closely watching Chair Jerome Powell’s speech for signals on the September FOMC meeting. As of the latest data, the market is pricing in an 80–95% probability of a 25-basis-point rate cut at the September meeting, but this could shift quickly depending on Powell’s messaging and incoming economic data. Analysts at QCP Capital highlighted the high stakes for the Fed, as it must balance inflation easing with rising labor risks. The outcome of this balancing act will likely shape the trajectory of risk assets like Bitcoin in the near term.

External pressures, including U.S. trade tariffs, have also contributed to risk-off sentiment. The imposition of 50% import duties on aluminum- and steel-containing products has raised concerns about inflationary pressures and supply chain disruptions. These fears have been exacerbated by corporate reports indicating that AI initiatives have yet to generate significant revenue, further cooling investor appetite for high-growth assets. Additionally, the SEC’s investigation into Alt5 Sigma, a firm linked to Trump’s World Liberty Financial, has added to the sense of instability in financial markets, with traders recalibrating their expectations for a September rate cut.

The Bitcoin options market has also shown signs of heightened fear, with the 30-day options delta skew reaching a four-month high of 12%. This metric, which reflects the imbalance between put and call options, has historically signaled periods of extreme volatility. A similar spike in April was followed by a 40% rebound in Bitcoin’s price, suggesting that current levels may also represent a potential inflection point. However, the broader market environment remains uncertain, with derivatives data showing a bearish skew and increased open interest in downside protection instruments. While these conditions reflect growing caution among traders, some analysts argue that they may not signal the end of the long-term bullish trend.

As Bitcoin continues to trade near key psychological levels and as the macroeconomic landscape remains dynamic, the coming days will be crucial for market sentiment. The release of the July FOMC minutes and Powell’s Jackson Hole speech could provide much-needed clarity—or further volatility. Until then, liquidity conditions, market positioning, and geopolitical developments will continue to shape price action.

Source: [1] Bitcoin analysts point to 'manipulation' as BTC price falls ... (https://cointelegraph.com/news/bitcoin-analysts-point-to-manipulation-as-btc-price-falls-to-17-day-low) [2] 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) [3] Crypto Bloodbath: 8 Reasons Why the Fed Might Not Want ... (https://www.coindesk.com/markets/2025/08/19/crypto-bleeds-ahead-of-powell-s-jackson-hole-speech-eight-reasons-traders-are-nervous) [4] Crypto Bleeds Ahead of Powell's Jackson Hole Speech (https://finance.yahoo.com/news/crypto-bleeds-ahead-powells-jackson-231313291.html) [5] Bitcoin Drops Below $114K, Ether Loses $4.2K as Jackson ... (https://www.coindesk.com/markets/2025/08/19/bitcoin-drops-below-usd114k-ether-loses-usd4-2k-as-jackson-hole-speech-might-bring-hawkish-surprise)