Bitcoin News Today: Bitcoin's ETF Exodus and Fed Doubts Cast Shadow Over Bullish Bets

Bitcoin's recent price action has sparked concerns about the cryptocurrency's momentum, with the 50-day Exponential Moving Average (EMA) at $114,788 acting as a pivotal technical level. On August 22, 2025, Bitcoin (BTC) closed below an ascending trendline drawn from early April lows and tested its support at $111,980. The price has retreated from an all-time high of $124,747, marking a decline of over 8%. The current level of the RSI at 42 suggests bearish momentum, indicating that a sustained recovery would require the RSI to move above its neutral value of 50.

This correction has been fueled by several factors, including a slowdown in demand and significant profit-taking, as evidenced by over $1.15 billion in outflows from Bitcoin spot ETFs—this is the largest outflow since early March 2025. On-chain analytics from CryptoQuant show that Bitcoin’s apparent demand has dropped significantly from 174,000 BTC in July to 59,000 BTC by mid-August. Additionally, institutional demand from ETFs has also weakened, with 30-day ETF net purchases hitting their lowest level since late April. These data points suggest fading momentum and could lead to further consolidation or correction.

The broader macroeconomic environment has also contributed to Bitcoin’s underperformance. The Federal Reserve's hawkish stance, as reflected in the July FOMC minutes, has raised concerns about inflation, which has pressured risk assets. Recent data, such as the Producer Price Index (PPI) figures surpassing expectations, indicate inflationary pressures are rising. As a result, the market's expectations for an imminent rate cut have diminished. According to the CME FedWatch tool, the probability of a 25 basis point rate cut now stands at 73.4%, a decline from 98% the previous week.

Despite these bearish signals, there are emerging signs of optimism. Institutional investors like Metaplanet and Strategy have added 1,185 BTC on price dips, signaling confidence in Bitcoin’s long-term fundamentals. Meanwhile, CMB International Securities, a subsidiary of China Merchants Bank, launched virtual asset trading in Hong Kong, supporting Bitcoin, Ethereum, and USDT. This marks a milestone as it is the first Chinese bank-affiliated brokerage to offer such services in compliance with local regulations. Such developments indicate growing institutional adoption and regulatory normalization of crypto assets.

However, Bitcoin’s path forward remains uncertain. If BTC manages to hold the $111,980 support level and recovers above the 50-day EMA, it could test the next daily resistance at $116,000. On the other hand, a breakdown below the support could extend the decline toward the 100-day EMA at $110,604. Traders are closely watching these levels and are awaiting Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium for clarity on the future monetary policy direction, which could influence Bitcoin’s next move.

Meanwhile, Shiba Inu (SHIB), another key cryptocurrency, has shown mixed signals. The token is currently trading at $0.000012, with a 27.11% drop in 24-hour trading volume compared to the previous day. SHIB ranks third in weekly performance among memecoins despite a 2% daily decline. However, it has underperformed other memecoins, with a 22% monthly drop compared to the category average of 25%. The token's circulating supply has also increased, intensifying downward pressure on the price. Key support levels for SHIB are at $0.00001252, with bulls defending these levels based on high trading volumes. If the price holds, a potential rebound toward $0.00001393 could be in play.

In contrast, XRP has shown tentative signs of a bounce. While specific metrics for XRP are not detailed in the content, broader market trends suggest that XRP could benefit from improved risk-on sentiment if macroeconomic conditions favor asset classes like Bitcoin. This is particularly relevant given that XRP is often considered a digital asset with strong regulatory clarity in several jurisdictions, which could attract investors seeking alternatives to more volatile memecoins.

As the crypto market navigates a complex mix of technical, on-chain, and macroeconomic factors, Bitcoin’s performance will be a key barometer for broader sentiment. The coming days will likely provide clarity on whether the recent correction is a short-term pullback or a more sustained bearish phase, especially with the Fed's messaging and institutional activity playing critical roles.

Source:

[1] Bitcoin Weekly Forecast: BTC correction amid over $1.15B in ETF outflows (https://www.mitrade.com/insights/news/live-news/article-5-1061457-20250822)

[2] SHIBA INU Price, SHIB Price, Live Charts, and Marketcap (https://www.coinbase.com/price/shiba-inu)