Bitcoin News Today: Bitcoin's Battle at $107K: Miners vs. Institutions in High-Stakes Crypto Showdown

Bitcoin's price has experienced significant volatility, falling to $108,299 from a peak of $124,128 earlier this month. The decline has broken through key technical levels, including the 20-day and 50-day exponential moving averages (EMAs) near $114,000, signaling a shift into a short-term bearish trend. The price has tested the $107,000 support level, with further declines threatening to push Bitcoin toward $103,991. Market observers are closely watching this critical level as it could determine the direction of Bitcoin in the near term. The selloff has also led to widespread liquidations, with $535 million in total liquidations reported, mostly from long positions. Ethereum, XRP, and Solana have also seen declines, reflecting broader risk-off sentiment in the crypto market.

Mining activity has also contributed to the downward pressure on Bitcoin. Over a 12-day period from August 11 to 23, miners sold 4,207 BTC, valued at nearly $500 million, the fastest liquidation pace in nine months. This selling has offset some of the buying activity seen from corporate entities such as MicroStrategy, which continues to accumulate Bitcoin aggressively. In contrast to miners, institutions are using Bitcoin as a tool to hedge against inflation and fiat currency depreciation. MicroStrategy holds 632,457 BTC, and its stock has surged over 2,200% since it began investing in Bitcoin in 2020. The divergent strategies between miners and institutions highlight the different roles Bitcoin plays in short-term liquidity management and long-term asset allocation.

Despite the recent downturn, institutional optimism remains strong. JPMorgan analysts argue that Bitcoin should already be trading at $126,000, citing a decline in annualized volatility to 30% from 60% at the start of 2025 as a sign of improved investability. Bitwise Asset Management has also projected a potential rise to $1.3 million by 2035, assuming a 28.3% compound annual growth rate (CAGR), with a bullish case as high as $2.97 million. These forecasts are underpinned by growing institutional interest in Bitcoin as a hedge against U.S. debt and interest rate risks, with U.S. debt exceeding $36 trillion and annual interest payments reaching $952 billion. As a result, Bitcoin is increasingly being positioned as a scarce asset that can preserve value against fiat devaluation.

Technical indicators suggest that Bitcoin is in a rising wedge pattern, with support at $107,000 and resistance near $116,000. A breakdown below $107,000 could trigger further declines toward $103,991, while a breakout above $116,000 could see the price move toward $120,000–$122,000. On-chain metrics like realized price levels show Bitcoin falling below its 1-month and 3-month realized prices at $115,300 and $113,700, respectively, adding to the selling pressure. The 6-month realized price at $107,440 has become a psychological pivot point for market sentiment. Bitcoin’s ability to rebound from the $108,500 level in early August also underscores the significance of this accumulation zone in the current market cycle.

Market sentiment has also been affected by infrastructure shocks, as seen in a 20-minute outage on Binance Futures that froze leveraged traders out of positions between 14:18 and 14:36 UTC+8. During the outage, Bitcoin slipped below $110,000, with BNB also dropping 1.8% to $857.79. Although services were quickly restored and funds were confirmed as safe, the incident highlighted how technical disruptions can exacerbate volatility in a 24/7 global market. Such events add an extra layer of uncertainty for traders and investors, who must also contend with macroeconomic factors like U.S. inflation and Federal Reserve policy expectations. As a result, Bitcoin’s short-term trajectory will likely depend on how well it holds the key support levels and whether broader market conditions favor risk-on or risk-off behavior.

Source: [1] Bitcoin Price Drops to $108K After $124K Peak - Trading News (https://www.tradingnews.com/news/bitcoin-price-falls-to-108k-usd-as-535m-usd) [2] Bitcoin Price Not Tied to Halvings Anymore, But Something Else (https://finance.yahoo.com/news/bitcoin-price-not-tied-halvings-100456907.html) [3] Is Bitcoin heading back to $90K? Solana ETFs, and more (https://cointelegraph.com/magazine/bitcoin-90k-forecast-crypto-trader-solana-etf-filings-hodlers-digest/) [4] Crypto Today: Bitcoin sell-off sends jitters across the ... (https://www.mitrade.com/insights/news/live-news/article-3-1080744-20250829)