Bitcoin News Today: Bitcoin Hovers Near Peak as Investors Wait for Fed Clarity

Bitcoin’s recent price action has drawn attention from analysts and investors as the cryptocurrency consolidates near its all-time high. At $115,800 as of the latest available data, Bitcoin remains approximately 6% below its peak of $124,128 reached in early August 2025. This consolidation phase reflects cautious positioning among market participants, who are awaiting key macroeconomic signals before committing to further price movements. According to Santiment, Bitcoin’s Market Value to Realized Value (MVRV) ratio of +21% indicates that the average investor is in profit territory, but also signals a “mild danger zone” where profit-taking could intensify [1].

The pullback from the recent high has been attributed to factors including reduced macroeconomic catalysts and higher-than-expected U.S. inflation data, which tempered overall risk appetite. A report from Bitfinex noted that Bitcoin retreated 5.44% from its peak, returning to the lower end of its trading range, and now appears to be entering a consolidation phase. The analysts emphasized that investors are adopting a wait-and-watch stance, particularly with attention focused on the U.S. Federal Reserve’s upcoming rate-cut decision on September 17, 2025 [2].

In this context, short positions in Bitcoin have also increased, with $2.2 billion in short positions at risk of liquidation should the price climb back to $124,128, according to CoinGlass. However, Santiment noted that large holders—wallets with 10 to 10,000 BTC—continue to accumulate aggressively, suggesting that long-term bullish sentiment remains intact despite recent volatility [1].

The broader cryptocurrency market also reflects caution. Bitcoin dominance has declined from 65% to 58.89% over the past two months, signaling a shift in capital toward altcoins and smaller market participants. However, this shift is often seen as a characteristic of the early stages of a bull market, where inflows first consolidate in top assets like Bitcoin and Ethereum before expanding. A significant break above all-time highs in either of these major coins would likely act as a catalyst for broader market optimism [2].

Meanwhile, the environmental footprint of Bitcoin remains a topic of debate. The cryptocurrency’s proof-of-work (PoW) consensus mechanism is energy-intensive, with annual electricity consumption estimated at 138–178 terawatt-hours—equivalent to the usage of a medium-sized country. This high energy demand has sparked discussions around sustainability, with industry participants exploring solutions such as renewable energy adoption and carbon offsetting [4]. In contrast, Ethereum’s transition to a proof-of-stake (PoS) model in 2022 reduced its energy consumption by over 99.9%, making it a more attractive option for investors prioritizing environmental, social, and governance (ESG) criteria [4].

As Bitcoin continues to consolidate, the market remains in a state of anticipation for macroeconomic clarity. Analysts suggest that the outcome of the Federal Reserve’s policy decisions will play a critical role in determining whether the current consolidation leads to a resumption of upward momentum or a more protracted consolidation phase. For now, investors are balancing between profit-taking and strategic accumulation, with long-term holders appearing unfazed by the recent price retracement [1].

Source: [1] Bitcoin 'Mild Danger Zone' As Profit-Taking Is A Possibility (https://cointelegraph.com/news/bitcoin-price-danger-zone-consolidation-profit-takers-analysts) [2] Bitcoin consolidation below $123000 reflects caution rather ... (https://cryptoslate.com/bitcoin-consolidation-below-123000-reflects-caution-rather-than-market-weakness/) [3] Bitcoin vs. Ethereum: Which Cryptocurrency Is the Best ... (https://finance.yahoo.com/news/bitcoin-vs-ethereum-cryptocurrency-best-125000570.html) [4] Bitcoin Price Hits $124000 Record High vs Ethereum ... (https://carboncredits.com/bitcoin-price-hits-124000-record-high-vs-ethereum-price-near-4800-which-crypto-is-greener/)