Bitcoin News Today: Bitcoin's Price Plunge Sparks War Between Whales and the Fed

Bitcoin's price has recently experienced a notable decline, dipping below $113,000 following what some analysts suggest is a pattern of orchestrated market manipulation. This downturn comes amid ongoing selling pressures in the United States and increased focus on bid liquidity dynamics within major exchanges. Traders and analysts have observed that liquidity clusters near $120,000 and the local range low at $112,000 are crucial for potential reversals in the market trend [1].

The price manipulation debate has gained traction, particularly with the presence of what Keith Alan, co-founder of Material Indicators, describes as "Spoofy the Whale" and the "Notorious B.I.D." These entities are believed to be influencing market behavior through strategic placement of bids and liquidity points on the order book. Alan points to the possibility of artificial price manipulation as liquidity appears to move lower, suggesting that such tactics could further depress Bitcoin's price [1].

Amid these pressures, market commentators like TheKingfisher have warned of potential further declines in Bitcoin's value, which could have cascading effects on altcoins. TheKingfisher highlighted that while altcoins currently maintain a balanced skew, a continued drop in Bitcoin could trigger significant losses in the broader crypto market. He noted that a 5% drop in Bitcoin might lead to 10–30% drops in altcoins, emphasizing the interconnectedness of the crypto market [1].

Despite these challenges, some analysts remain cautiously optimistic. Rekt Capital compared the current price action to bull-market corrections seen in 2017 and 2021, both of which preceded new All-Time Highs. This historical perspective offers a silver lining for investors, suggesting that the current pullback could be a precursor to further price surges [1].

Looking ahead, market attention is focused on the upcoming Jackson Hole economic symposium, where Federal Reserve Chair Jerome Powell is expected to provide insights into potential monetary policy shifts. With markets currently pricing in an 80–95% probability of a 25-basis-point rate cut at the September FOMC meeting, the Fed's messaging will be crucial for both equity and crypto markets [1].

Institutional buying activity has also played a significant role in Bitcoin's recent price dynamics. Metaplanet and Strategy have both added to their corporate Bitcoin holdings, with Metaplanet acquiring 775 BTC and Strategy purchasing 430 BTC. These purchases highlight the growing institutional confidence in Bitcoin as a strategic asset, even as prices fluctuate [6].

Technical analysis of Bitcoin's chart patterns has further underscored the uncertainty surrounding its immediate price direction. The formation of a potential head and shoulders pattern, a widely recognized indicator of a bullish to bearish reversal, has drawn attention from traders and analysts. This pattern, characterized by three peaks with the middle one being the highest, could signal an impending downtrend if confirmed [4].

Moreover, the Short-Term Holder Spent Output Profit Ratio (STH-SOPR) has provided additional insight into market sentiment. Currently hovering near the neutral 1.0 mark, the STH-SOPR suggests that the market is at a pivotal moment. A sustained move above 1.0 could indicate continued profit-taking and potential for a rally toward $120,000 to $130,000. Conversely, a dip below this level might signal renewed selling pressures and a possible decline toward $95,000-$100,000 [7].

The broader market dynamics reveal a tug-of-war between speculative leverage and institutional demand. While speculative activity has surged, evidenced by open interest crossing $40 billion and positive funding rates indicating a strong long bias, this leverage also introduces volatility. Institutional demand, on the other hand, continues to grow steadily, with over 1.3 million BTC accumulated by ETFs and corporate treasuries, providing a stabilizing influence on Bitcoin's long-term trajectory [7].

As the market navigates these complex dynamics, investors are advised to remain cautious and vigilant. The interplay of speculative positioning and institutional accumulation creates a layered market environment where short-term turbulence coexists with long-term potential. With the Federal Reserve's upcoming statements and corporate buying activity continuing to shape the market, the next few months will be critical in determining Bitcoin's path forward [1].

Source:

[1] Bitcoin analysts point to 'manipulation' as BTC price falls to 17-day low (https://cointelegraph.com/news/bitcoin-analysts-point-to-manipulation-as-btc-price-falls-to-17-day-low)

[2] Bitcoin could reach $200,000 within 6 months during 'long exhausting bull run' (https://finance.yahoo.com/news/bitcoin-could-reach-200000-within-6-months-during-long-exhausting-crypto-bull-market-173358527.html)

[3] Bitcoin sinks to $115000 after hitting its newest record, as... (https://www.cnbc.com/2025/08/18/crypto-market-today.html)

[4] Head and Shoulders Pattern - Technical Analysis (https://www.investopedia.com/terms/h/head-shoulders.asp)

[5] Top Chart Patterns For Crypto Trading (https://changelly.com/blog/crypto-chart-patterns/)

[6] Bitcoin Price Slides Below $115000 As Strategy And... (https://bitcoinmagazine.com/markets/bitcoin-price-slides-below-115000-as-strategy-and-metaplanet-buys-additional-bitcoin)

[7] SOPR Flat, Leverage Spikes: Will Bitcoin Explode or Get... (https://cryptopotato.com/sopr-flat-leverage-spikes-will-bitcoin-explode-or-get-crushed/)