Bitcoin News Today: Bitcoin Plummets 8.1% Amid Market Liquidations and Fed Outlook Concerns

Bitcoin’s recent price action has ignited widespread debate among traders and analysts as it entered a significant correction phase, with the price dropping more than $10,000 from its recent peak above $124,000 [1]. The sharp decline came amid growing macroeconomic pressures and evolving technical dynamics in the cryptocurrency market. While some view the pullback as a healthy consolidation after an extended bullish trend, others warn of deeper structural concerns.

One of the most discussed aspects of the correction is the possibility of market manipulation. Several traders have pointed to a coordinated move that triggered over $1 billion in liquidations within 24 hours, according to CrypNuevo [1]. This has raised alarms about the resilience of the current market structure and whether retail investors were disproportionately affected.

The broader financial environment also plays a critical role in shaping Bitcoin’s near-term trajectory. The upcoming Jackson Hole symposium, where Federal Reserve Chair Jerome Powell will outline the central bank’s stance on monetary policy, is expected to be a key event influencing investor sentiment [1]. Mosaic Asset noted that the Fed’s handling of inflationary pressures and labor market data could determine whether Bitcoin sees renewed demand or faces further downward pressure.

From a technical perspective, Bitcoin remains above its 21-day moving average, which some analysts view as a sign of continued bullish momentum. However, Material Indicators cautioned that this alone does not guarantee a breakout, and the probability of a significant upward move remains low this week [1]. Meanwhile, volume levels have been weak, raising concerns about the sustainability of previous price highs.

Interestingly, the Coinbase Premium remains positive, indicating strong institutional interest in the U.S. market [1]. Analysts have speculated whether this is driven by large buyers such as Saylor, who has been executing large-scale trades. This divergence in price action between major exchanges like Coinbase and Binance highlights the fragmented nature of the crypto market.

As Bitcoin enters its seventh week of an uptrend, some traders are beginning to question whether the market is nearing a critical inflection point. A prominent candlestick pattern featuring a gap-up open and a long upper shadow has emerged, suggesting potential resistance and a possible reversal [4]. While this could signal a bearish trend, the interpretation remains mixed, with uncertainty over whether it will lead to a rebound or a deeper correction.

Futures activity continues to influence Bitcoin’s price action. These derivatives are not only speculative tools but also essential for price discovery and liquidity [6]. As futures markets become more integrated with spot trading, the interplay between derivative positioning and on-chain activity is adding further complexity to price movements.

Despite the recent correction, broader market optimism provided some support. Strong earnings from S&P 500 firms helped ease investor concerns about economic conditions, with companies reporting results that exceeded revised expectations [7]. However, this optimism has yet to fully translate into a sustained recovery for Bitcoin, as mixed signals continue to dominate the narrative.

The week’s developments underscore the fragile and evolving nature of the crypto market. While certain technical indicators suggest a possible reversal, the macroeconomic backdrop and shifting market structure remain central to any near-term outlook. The coming days will be crucial in determining whether this correction is a temporary setback or a sign of a larger shift in Bitcoin’s price trajectory [1][4].

Source:

[1] Bitcoin Faces a Tense Week Amid Correction and Mixed Signals (https://www.cointribune.com/en/bitcoin-faces-a-tense-week-amid-correction-and-mixed-signals/)

[2] Crypto Exchange Gemini's Losses Explode 580% Before Going (https://m.fastbull.com/news-detail/crypto-exchange-geminis-losses-explode-580-before-going-news_6100_0_2025_3_8162_3/6100_BNB-USDT)

[4] Markets Staged a Strong Rally Today as Investor Confidence... (https://www.facebook.com/groups/880926159340769/posts/1954963521937022/)

[6] Bitcoin Futures Are More Than Just Derivatives (https://www.kucoin.com/news/page/3)

[7] Strong Crop of Earnings Eases Investors' Economic Concerns (https://customercenter.wsj.com/todaysPaper/?gaa_at=eafs&gaa_n=ASWzDAhlgWPFAD524_ntiL6UbqyyZvPjlhEplvHhGKdb0fz7j5X8CoSzg0_N&gaa_sig=6HClDU2QWTpyczztVQRvM6QvwBsfv20P0qB5jbVoMHp_0oQhZI8MCSG7G3Z4-uEcj0x86zlXGARECJWGA0TfCA%3D%3D&gaa_ts=68a37383)