Bitcoin News Today: Bitcoin faces short-term selling pressure amid rising exchange inflows and inflation concerns

Bitcoin is currently facing potential short-term selling pressure due to a notable increase in exchange inflows, a trend historically associated with accumulation ahead of selling activity. In mid-August 2025, on-chain data showed growing movement of Bitcoin to exchange platforms, with a single transaction of 16.8K BTC reported as a sign of capitulation from large holders [1]. This inflow pattern is linked to institutional repositioning rather than new investment, suggesting strategic shifts in capital management [2].

The increase in exchange inflows coincided with Bitcoin’s recent price retreat to $118,000, following a failed attempt to break through key supply zones. The broader market context includes rising inflation concerns, which contributed to a 2% drop in Bitcoin’s price after the latest U.S. inflation report came in hotter than expected [3]. Analysts have also pointed to the impact of comments from Federal Reserve official Kashkari, who ruled out new government Bitcoin purchases, adding to the bearish sentiment [3].

Institutional activity is evident in financial indicators such as ETF inflows, which reached $40 billion in volume. However, the current wave of exchange inflows signals repositioning rather than direct investment, indicating a shift in market strategy [2]. This trend is further reinforced by the movement of stablecoins into exchanges, with $3.88 billion in stablecoin inflows recorded recently, reflecting a shift in risk appetite as traders prepare for potential volatility [5].

Large whale accounts have also been observed moving Bitcoin to exchanges, with some activity reported on Binance. While the exact motivations remain unclear, the overall pattern suggests increased caution among traders. This is supported by historical on-chain trends, which show that similar accumulation and leverage spikes have often preceded price corrections [1].

Despite the near-term bearish signals, the year-to-date trend for Bitcoin remains bullish, driven by expectations of a Fed rate cut and growing institutional adoption [4]. Bitcoin’s price reached a peak of $124,024.49 earlier in the week, attributed to ETF inflows and expectations of monetary policy easing [7]. However, the formation of a potential double top near the $123,217 resistance level indicates that upward momentum may be weakening [1].

Market observers are closely monitoring on-chain data and the upcoming Bitcoin halving event, which is expected to reduce the rate of new Bitcoin issuance by 50%. While the halving could strengthen Bitcoin’s long-term scarcity and value proposition, the immediate focus remains on managing short-term volatility and assessing the impact of ongoing capital flows into exchanges [8].

Source:

[1] Bitcoin STH Capitulation Selling Weakens: 16.8K BTC Sent... (https://www.mitrade.com/au/insights/news/live-news/article-3-104479-20250816)

[2] Bitcoin News Today: Bitcoin Traders Absorb Dips as U.S.... (https://www.ainvest.com/news/bitcoin-news-today-bitcoin-traders-absorb-dips-korean-demand-rises-ghost-month-concerns-2508/)

[3] Bitcoin sinks following hotter-than-expected inflation print... (https://m.fastbull.com/news-detail/bitcoin-sinks-following-hotterthanexpected-inflation-print-bessent-comments-4339901_0)

[4] Bitcoin Price Hits New All-Time High of $124K with Fed... (https://coincentral.com/bitcoin-price-hits-new-all-time-high-of-124k-with-fed-rate-cut-expectations/)

[6] Why are Whales Moving Bitcoin to Binance? Weekly... (https://beincrypto.com/whales-moving-bitcoin-to-binance/)

[7] Bitcoin scales fresh record highs amid rising bets on Fed... (https://www.economies.com/crypto/news/bitcoin-scales-fresh-record-highs-amid-rising-bets-on-fed-rate-cuts-47106)

[8] Bitcoin Halving Countdown: This Altcoin Could Outperform... (https://m.fastbull.com/news-detail/bitcoin-halving-countdown-this-altcoin-could-outperform-all-4339873_0)