Bitcoin News Today: Bitcoin's Pullback Tests Bulls as Leverage, Fed Uncertainty Fuel $1B in Liquidations

Bitcoin's price has experienced a recent pullback, trading at around $115,000, a 7% decline from its record high of $124,000. This drop comes amid a broader market correction driven by profit-taking, leverage unwind, and uncertainty surrounding Federal Reserve policy. Despite the dip, Anthony Scaramucci remains bullish on Bitcoin, with his year-end price prediction for BTC standing at a significantly higher figure. His confidence contrasts with the current turbulence, highlighting the ongoing debate about the cryptocurrency's trajectory.

The recent correction has led to massive liquidations in the crypto market, with over $1 billion wiped out in just a few days. Long positions, especially bullish trades, accounted for the majority of these losses, with 95% of liquidations tied to such positions. This overleveraged exposure became evident when Bitcoin's price began to retreat, triggering a cascade of liquidations that further depressed prices. Ethereum was particularly hard hit, with $170 million in liquidations, while Bitcoin itself saw $104 million in losses.

Market observers attribute this sell-off to a "reset of short-term positioning" rather than a fundamental shift in sentiment. However, the presence of high leverage in the system means that even minor price movements can trigger significant unwinding events. This dynamic underscores the fragility of current market conditions and the need for caution among traders.

Profit-taking has also played a role in Bitcoin's decline. The cryptocurrency's Market Value to Realized Value (MVRV) ratio currently stands at 21%, meaning the average investor who bought Bitcoin over the past year is in profit. According to sentiment platform Santiment, this puts Bitcoin in a "mild danger zone," as investors begin to consider locking in gains after hitting new all-time highs. The temptation to sell becomes stronger with each passing day of uncertainty, creating additional selling pressure on the market.

The Federal Reserve's policy uncertainty is another critical factor affecting Bitcoin's price. Markets had priced in aggressive rate cuts over the past months, but recent inflation data and resilient employment numbers have cast doubt on these expectations. As a result, the odds of a Fed rate cut in September have increased from 12% to 26% in a short period. This recalibration has created a degree of market uncertainty, as lower interest rates typically make risk assets like Bitcoin more attractive. The removal of this support has exacerbated the current correction in Bitcoin's price.

Looking to the future, Anthony Scaramucci's prediction remains rooted in the long-term potential of Bitcoin as a store of value and a hedge against traditional financial assets. Despite the current turbulence, he believes that Bitcoin can recover and even reach new heights by the end of the year. This outlook aligns with the views of other prominent market participants, including Michael Saylor of MicroStrategy and Cathie Wood of ARK Invest, who also see significant upside for Bitcoin in the coming years.

Technical analysis further supports the bullish case for Bitcoin. The BTC price has crossed the trendline drawn since mid-April, but the 50 EMA remains intact, providing a crucial support for bulls. Even if a breakout occurs, the immediate support zone around $112,000—reinforced by the 23.6% Fibonacci retracement—offers a potential floor for the price. Above this level, the path appears more favorable for a rebound toward resistance levels at $120,000 and $124,000.

The broader market context also shows mixed signals. While 63 of the top 100 cryptocurrencies still trade above their 200-day moving averages, a bullish long-term sign, exactly 50% now trade below their 50-day averages, indicating short-term weakness. This pattern is mirrored in the Nasdaq, where 61 stocks are above their 200-day averages, and 49 are below their 50-day averages, suggesting that the crypto market is not alone in experiencing caution.

Despite the current volatility, the overall narrative for Bitcoin remains positive. Institutional adoption continues to grow, with companies like Strategy (formerly MicroStrategy) and Tesla accumulating large amounts of BTC as part of their treasury strategies. These developments underscore Bitcoin's increasing acceptance as a legitimate financial asset and its potential to diversify traditional investment portfolios.

In conclusion, while the current pullback in Bitcoin's price has tested the resolve of even the most bullish investors, the underlying fundamentals remain strong. Anthony Scaramucci's year-end price prediction reflects this optimism, as he believes Bitcoin can overcome the current challenges and reach new highs. As the market continues to evolve, the interplay between technical indicators, institutional adoption, and macroeconomic factors will be crucial in determining Bitcoin's future performance.

Source: [1] Bitcoin Price Is Going Down as Market Stress Tests Bulls Before Jackson Hole (https://www.financemagnates.com/trending/bitcoin-price-is-going-down-as-market-stress-tests-bulls-before-jackson-hole/) [2] SPX, DXY, BTC, ETH, XRP, BNB, SOL, DOGE, ADA, LINK (https://cointelegraph.com/news/price-predictions-8-18-spx-dxy-btc-eth-xrp-bnb-sol-doge-ada-link) [3] BTC Faces Correction Fears, Remittix Draws Whales Attention (https://coincentral.com/bitcoin-price-prediction-btc-faces-correction-fears-remittix-draws-whales-attention/) [4] The 10 Public Companies With the Biggest Bitcoin Portfolios (https://finance.yahoo.com/news/10-public-companies-biggest-bitcoin-193206248.html) [5] Prediction: Bitcoin Will Be Worth $500,000 in 5 Years (https://www.fool.com/investing/2025/08/19/prediction-bitcoin-will-be-worth-500000-in-5-years/) [6] From Bitcoin to stablecoins: A new era of digital currency at... (https://www.scrippsnews.com/life/money/from-bitcoin-to-stablecoins-a-new-era-of-digital-currency-at-major-banks) [7] Stablecoins vs. Bitcoin: 7 Major Differences Explained (https://transak.com/blog/stablecoins-vs-bitcoin)