Bitcoin News Today: "Bitcoin's $113K Slide Unveils Fears of a Market Correction"

Bitcoin’s price experienced a sharp correction, dropping below $113,000 for the first time in over two weeks, raising concerns among traders and analysts about the sustainability of the ongoing bull market. The decline, which came on the heels of Bitcoin’s record high of $124,176, triggered the liquidation of approximately $113 million in leveraged long positions and marked a significant shift in sentiment among retail investors, who have moved from bullish optimism to “ultra bearish” expectations. According to Santiment, this shift was evident in the sharp deterioration of the Bitcoin 30-day options delta skew metric, which hit 12%, a level last seen in April when Bitcoin dropped below $74,500 and eventually rebounded by 40% within a month [6].

The correction has been attributed to a combination of macroeconomic and geopolitical factors, including the U.S. government’s new 50% import tariffs on steel- and aluminum-containing products, which have raised concerns about supply chain disruptions and inflationary pressures. Additionally, a U.S. Treasury report highlighted the potential for $6.6 trillion in bank deposit outflows if stablecoin issuers gain the ability to offer interest directly to holders, further fueling uncertainty in the market [2]. These developments, combined with reports of an SEC investigation into Alt5 Sigma—linked to Donald Trump’s World Liberty Financial—have exacerbated investor caution [1].

Ethereum, the second-largest cryptocurrency by market capitalization, has also seen a notable decline, falling by over 5% to $4,354.00 from its near-record high [3]. This move has been linked to broader market concerns, including a 1.5% drop in the Nasdaq 100 following research that found most companies have not yet achieved significant revenue growth from AI initiatives [1]. The decline in Ethereum has been further compounded by increased selling pressure from institutional investors, with the CoinDesk 20 index, a broad measure of the crypto market, falling 1.2% [3].

Amid the volatility, on-chain data has revealed mixed signals for the future of Bitcoin. While large whale wallets continue to accumulate Bitcoin, suggesting strong conviction in its long-term trajectory, retail investors have shown signs of panic selling, with over 470,000 new Bitcoin wallets created in just nine days [6]. This surge in small wallet activity has been interpreted as a sign of retail FOMO, a classic indicator of potential market tops. Additionally, Ethereum’s 365-day MVRV ratio has reached a historically high +57%, indicating extreme profitability among traders and increasing the risk of a correction [4].

Despite these bearish indicators, some analysts argue that Bitcoin’s long-term bullish trend remains intact. Historical patterns suggest that significant corrections often precede renewed price surges, as seen in 2017 and 2021, where Bitcoin rebounded strongly after similar pullbacks. The market is now closely watching the upcoming Federal Reserve meeting in Jackson Hole, Wyoming, for clarity on monetary policy and potential interest rate cuts. If the Fed signals a more cautious approach to rate cuts, it could further pressure crypto prices in the short term [2].

The broader financial landscape is also seeing increased attention on gold as a safe-haven asset. UBS has raised its gold price forecast to $3,700 by September 2026, citing factors such as weak economic growth, Fed policy easing, and a weaker dollar [1]. This shift in capital allocation could impact Bitcoin’s performance, as both assets often move in tandem during periods of macroeconomic uncertainty.

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 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/) [3] Bitcoin sinks to $115000 after hitting its newest record, as ... (https://www.cnbc.com/2025/08/18/crypto-market-today.html) [4] This Week in Crypto, Full Written Summary: W2 August (https://app.santiment.net/insights/read/this-week-in-crypto-full-written-summary-w2-august-8859) [5] Keep Tabs On These Top Developing Ecosystems and ... (https://app.santiment.net/insights/read/keep-tabs-on-these-top-developing-ecosystems-and-their-percent-changes-8863) [6] Bitcoin Corrects Below $113K As Retail Traders Panic Sell (https://cointelegraph.com/news/retail-flips-ultra-bearish-bitcoin-dips-113k-santiment)