Bitcoin News Today: Bitcoin's Institutional Exodus Echoes 2022 Bear Market Signals

Bitcoin (BTC) faces key resistance levels amid heightened volatility and uncertainty surrounding a potential capitulation event. As the second week of September begins, BTC/USD oscillates within a tight range between $110,500 and $111,500, with bears intensifying their efforts to push the price below critical thresholds. Analysts have highlighted $106,700 as a key level of support to watch in the event of a breakdown. If this level fails, Fibonacci retracement levels conflate with $100,000 as a “worst-case scenario” floor. Telegram analytics channel Coin Signals has projected a potential -30% correction from the recent high of $124,000, which would bring Bitcoin down to approximately $87,000, depending on the timing and depth of the pullback [1].

The macroeconomic environment continues to shape investor sentiment, particularly with the upcoming U.S. inflation data. The Producer Price Index (PPI) and Consumer Price Index (CPI) will be released on September 10 and 11, 2025, respectively. These reports are seen as pivotal for gauging the Federal Reserve's next move on interest rates. According to CME Group’s FedWatch tool, markets are fully pricing in a rate cut at the September meeting, with some anticipation of a larger-than-expected 0.25% reduction. However, critics argue the Fed has lagged behind other major central banks, which have implemented multiple rate cuts in 2025, while the U.S. remains on hold [1].

Amid these macroeconomic concerns, there are signs of a renewed institutional "re-rotation" back into Bitcoin. Last week, U.S. spot Bitcoin ETFs saw $246.4 million in inflows, while Ether ETFs experienced net outflows of $787.7 million. Andre Dragosch, European head of research at Bitwise, noted this shift in capital flows as a positive sign for Bitcoin’s institutional appeal. Meanwhile, Farside Investors reported four consecutive days of outflows for spot Ether ETFs, totaling over $750 million, underscoring the broader trend of capital reallocation [1].

On-chain data also paints a bearish picture, particularly for large Bitcoin holders. Whale activity suggests a continuation of the 2022 bear market dynamics, with institutional players reducing their exposure to BTC. According to CryptoQuant, whale reserves have dropped by over 100,000 BTC in the last 30 days, signaling risk aversion among major investors. This behavior is reminiscent of the 2022 market period, when BTC bottomed out at $15,600. The current drawdown could further pressure the price in the coming weeks if large players continue to offload holdings [1].

Liquidity conditions in Bitcoin futures markets have also raised alarms. Binance’s Taker Buy/Sell Ratio, a key indicator of market sentiment, is forming a bearish divergence, with lower lows observed despite the price expanding higher. This pattern has historically signaled potential bull market corrections. CryptoQuant contributor Mignolet noted that this divergence is particularly concerning given the increased presence of institutional activity, which could amplify the impact of a potential liquidity squeeze. If liquidity fails to recover amid ongoing positive catalysts, the situation could become "serious" [1].

While Bitcoin remains under pressure, Ethereum (ETH) and other altcoins have shown mixed performance. Ethereum is currently trading near $4,288, having seen a pullback from intraday highs above $4,334. Solana (SOL) and Dogecoin (DOGE) saw positive gains of 1.92% and 5.03%, respectively. JUP, the token of the Jupiter decentralized exchange, is also drawing attention amid broader altcoin optimism. However, Ethereum ETFs remain in the spotlight as investors evaluate the implications of continued outflows and potential regulatory developments [2].

In the broader market, options data reveals a bullish tilt for certain altcoins like XRP and SOL, contrasting with bearish positioning in BTC and ETH. XRP call options are trading at a premium, with traders anticipating potential U.S. ETF approvals that could drive substantial price gains. Solana’s recent Alpenglow upgrade, which significantly improved network speed, is also seen as a catalyst for institutional adoption. In contrast, bearish sentiment for BTC is evident as puts are priced higher across multiple expiries, including the March 2026 contract [5].

Source:

[1] Here's 5 Things Bitcoin Traders Are Talking About This Week (https://cointelegraph.com/news/btc-dip-predictions-fall-below-90k-5-things-to-know-in-bitcoin-this-week)

[2] Bitcoin, Dogecoin, Solana Gain; Ethereum Steady: Analyst ... (https://www.benzinga.com/crypto/cryptocurrency/25/09/47539828/bitcoin-dogecoin-solana-gain-ethereum-steady-analyst-says-btcs-breakout-past-this-level-could-be-a-massive-trigger)

[3] BTC, ETH, XRP, BNB, SOL, DOGE, ADA, LINK, HYPE, SUI (https://cointelegraph.com/news/price-predictions-9-5-btc-eth-xrp-bnb-sol-doge-ada-link-hype-sui)

[4] Santiment's Take on Bitcoin, Ethereum and Dogecoin (https://www.coindesk.com/markets/2025/09/06/santiment-highlights-five-of-this-week-s-top-trending-coins-btc-eth-doge-usdt-egld)

[5] XRP and SOL Signal Bull Run While Traders Hedge for ... (https://www.coindesk.com/markets/2025/09/08/xrp-and-sol-signal-bullish-strength-while-traders-hedge-for-downside-in-bitcoin-and-ether)