Bitcoin News Today: Bitcoin's Price Plunge Sparks Whispers of Hidden Market Hands

Bitcoin's price dropped below $113,000 last week amid renewed macroeconomic concerns, triggering a wave of forced liquidations across the market. The decline came as higher-than-expected inflation data raised doubts about the likelihood of a Federal Reserve rate cut in September. According to CoinGlass, over $530 million in long positions were liquidated in the past 24 hours, with $124 million in Bitcoin and $184 million in Ether longs sold. This liquidation pressure pushed Bitcoin to a low of $114,706 and Ether to $4,354.00 [2].

Analysts have pointed to potential manipulation in Bitcoin's price action, citing unusual order-book dynamics and the presence of liquidity clusters at key price levels. Keith Alan, co-founder of trading resource Material Indicators, noted that the movement of bid liquidity downward could be a sign of orchestrated price pressure. This speculation aligns with the idea that entities with large order sizes—often referred to in the market as “Spoofy the Whale” or the “Notorious B.I.D.”—may be influencing the price. However, Alan cautioned that it is too early to draw firm conclusions [3].

Bitcoin's recent performance has been closely watched in the context of the broader economic environment, particularly with the Federal Reserve's Jackson Hole symposium approaching. The speech by Fed Chair Jerome Powell is expected to provide clarity on the central bank's stance on inflation and the potential timing of rate cuts. Markets are currently pricing in a 25-basis-point cut at the September FOMC meeting, with further cuts expected by year-end. If Powell signals a more hawkish approach, focusing on inflation risks, Bitcoin and other risk assets could face renewed selling pressure. A dovish tone, on the other hand, could bolster hopes for an earlier easing of monetary policy and offer support to digital assets [6].

Despite the recent volatility, Bitcoin remains significantly above its previous all-time high of $124,000, which it reached in mid-August. Institutional adoption and the continued inflow of capital into Bitcoin spot ETFs have contributed to a bullish outlook for the asset. This is underscored by the fact that ETFs tracking Bitcoin and Ether recorded net inflows of $547 million and $2.9 billion, respectively, for the week, despite net outflows on the final trading day [2].

Looking ahead, the market remains focused on key price levels and the Federal Reserve's policy direction. A decisive move below $114,000 could signal continued downward momentum, with further support levels of interest at $112,000 and potentially $110,000. On the other hand, a strong rebound above $114,000 could reignite the bullish trend and set the stage for another record high in the coming months. Traders and analysts alike are watching for confirmation from Powell’s speech, which could shape the next phase of Bitcoin’s price trajectory [6].

Source: [1] title1 (https://finance.yahoo.com/news/bitcoin-could-reach-200000-within-6-months-during-long-exhausting-crypto-bull-market-173358527.html) [2] title2 (https://www.cnbc.com/2025/08/18/crypto-market-today.html) [3] title3 (https://cointelegraph.com/news/bitcoin-analysts-point-to-manipulation-as-btc-price-falls-to-17-day-low) [6] title6 (https://cointelegraph.com/news/bitcoin-price-dip-hinges-on-114k-as-markets-shrug-off-us-eu-trade-deal)