Bitcoin News Today: Bearish Sentiment Peaks as BTC Tests $112K Support Amid Macro Doubts

Bitcoin's price dropped below $113,000 for the first time in over two weeks, triggering a wave of forced liquidations totaling over $113 million in leveraged long positions. The sharp decline followed a record high of $124,176 earlier in the week, raising questions about the sustainability of the bull market amid growing macroeconomic uncertainty. The drop has led to heightened investor caution, as reflected in the BTC options delta skew metric, which turned bearish and reached 12%, its highest level in over four months [1].

The market volatility was partly attributed to growing concerns over the U.S. economy, including the introduction of new 50% import duties on 407 additional aluminum- and steel-containing products. These duties, which include everyday goods like car parts and plastics, have raised concerns about potential supply chain disruptions and higher consumer prices [1]. Additionally, the U.S. Federal Reserve's policy direction remains uncertain, as investors await key signals from the Jackson Hole economic symposium and the Federal Open Market Committee (FOMC) meeting.

Amid these developments, the U.S. Securities and Exchange Commission (SEC) reportedly launched an investigation into Alt5 Sigma, a company recently partnered with World Liberty Financial. The latter, which markets itself as a DeFi and stablecoin platform, raised $550 million through two public token sales and has ties to U.S. President Donald Trump. The investigation and corporate AI disappointments reportedly accelerated Bitcoin’s price correction [1].

Retail investor sentiment has deteriorated significantly, with analysis from Santiment indicating extreme pessimism on social media platforms. This is the strongest bearish sentiment since June 22, when the U.S. conducted airstrikes over the Israel conflict. Historical data shows that such extreme negative sentiment often precedes market rebounds, offering opportunities for patient investors to add to their positions or increase holdings [4].

The crypto market’s broader context reveals a mixed landscape. While Bitcoin and Ethereum have seen recent declines, U.S.-listed spot ETFs attracted nearly $900 million in inflows last week. However, analysts like Glassnode warn that without renewed conviction in spot markets, positions remain vulnerable to deeper deleveraging. Enflux, a Singapore-based market maker, argues that the industry is maturing rapidly and that price action is a short-term disconnect from the long-term structural progress [7].

Looking ahead, the focus remains on the Federal Reserve’s policy decisions and the outcome of the Jackson Hole symposium. If the Fed signals a slower path to easing, markets could reprice aggressively, tightening financial conditions and putting further pressure on crypto prices. However, some analysts believe that if the Fed maintains its easing trajectory, confidence in the crypto rally could be restored, potentially leading to renewed momentum [3].

The Bitcoin price currently hovers near critical support levels, with analysts like Alex Kuptsikevich of FxPro noting that a consolidation below the 50-day moving average could increase the likelihood of a deeper correction. A sustained drop below $112,000 could confirm a broader market correction, opening the potential for a decline to the $105,000–$107,000 range [3].

Despite the short-term turbulence, the long-term bullish trend for Bitcoin remains intact. Historical patterns and market behavior suggest that current volatility is part of a larger cycle, with potential for significant rebounds ahead. As investors and traders continue to monitor key economic signals and market developments, the path forward for Bitcoin will likely be shaped by both macroeconomic conditions and institutional adoption trends.

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 sinks to $115000 after hitting its newest record, as ... (https://www.cnbc.com/2025/08/18/crypto-market-today.html)

[3] Bitcoin Price Crash Fears Gather As Crypto Braces For A ... (https://www.forbes.com/sites/digital-assets/2025/08/19/wall-street-issues-serious-66-trillion-crypto-warning-as-price-crash-fears-hit-bitcoin-ethereum-and-xrp/)

[4] A shift in retail sentiment toward extreme pessimism often ... (https://www.panewslab.com/en/articles/538c7ff3-d975-4aba-ab07-68d193f647c1)

[5] Bitcoin Drops to $113K, Retail Traders Turn Bearish (https://thecryptobasic.com/2025/08/20/bitcoin-drops-to-113k-retail-traders-turn-bearish-why-this-could-be-a-positive-signal/)

[6] Asia Morning Briefing: Market Observers Say Bitcoin's ... (https://www.coindesk.com/markets/2025/08/20/asia-morning-briefing-market-observers-say-bitcoin-s-structure-looks-weak-even-as-industry-strengthens)

[7] Market Observers Say Bitcoin's Structure looks Weak Even as ... (https://finance.yahoo.com/news/asia-morning-briefing-market-observers-010436345.html)