Bitcoin News Today: Bitcoin Bounces Off CME Gap as Institutional Buying and ETF Inflows Signal Bullish Potential

Bitcoin’s price experienced a notable rebound following the closure of a key CME gap near $117,500, sparking optimism about the potential for a new bullish phase in the market [1]. The recovery came after a volatile week marked by conflicting economic data and large-scale position liquidations. Initially, softer-than-expected U.S. Consumer Price Index (CPI) data fueled market optimism, raising expectations for a Federal Reserve rate cut in September. However, this was quickly tempered by hotter-than-expected Producer Price Index (PPI) data, which signaled persistent inflationary pressures and triggered a risk-off sentiment, pushing Bitcoin below $118,000 [1].

The drop led to a $1.89 billion unwind in long positions, primarily affecting late longs, which analysts attributed to over-leveraged traders being caught off guard. Despite the volatility, Bitcoin showed resilience, bouncing from the $117,500 level and regaining the 4-hour 50 EMA [1]. Crypto analyst Ted Pillows noted that the price rebounded exactly from the CME gap level and suggested that the worst of the recent decline might be behind the market, potentially heralding a new rally [1].

Institutional demand remained a stabilizing force amid the swings. Several companies, including Strategy, Metaplanet, and Capital B, continued to increase their Bitcoin holdings as part of broader corporate treasury strategies. Corporate holdings have grown from 1.1 million BTC in 2024 to 1.77 million BTC in August 2025, highlighting a steady trend of institutional adoption. Meanwhile, Bitcoin spot ETFs recorded over $561 million in net inflows during the week, further supporting the narrative of growing institutional confidence [1].

Technical indicators also pointed to a potential shift in momentum. The RSI was at 54, and the MACD showed a bullish crossover, suggesting the possibility of upward movement. Analyst Jelle noted that 75% of the CME gap had been closed and that Bitcoin had regained key technical levels, which could pave the way for a retest of the recent record high of $124,474 if the $120,000 level solidifies as support [1].

Trader sentiment varied, with some viewing the price action as an unusual yet bearish sign. Crypto Chase observed patterns such as single failed pushes and straightforward swing failure points, describing the move as “the most free basic short of all time.” Despite such concerns, the derivatives market showed a balanced outlook, with Bitcoin futures premiums in a neutral range and a delta skew near 3%, suggesting traders were not overbidding for either sharp declines or large rallies [1].

As of Friday, Bitcoin traded near $118,800, with key support at $116,000. A sustained hold above this level could trigger a retest of the $124,474 high. However, macroeconomic factors, particularly Federal Reserve policy expectations, remain influential variables that could affect short-term price action [1].

[1] https://www.livebitcoinnews.com/bitcoin-price-jumps-after-cme-gap-closure-hinting-at-bullish-phase-potential/