Bitcoin News Today: Bitcoin’s Sell-Off Spikes as Bulls Battle Institutional Uncertainty

Bitcoin’s price declined to $113,000 as analysts warned of potential deeper corrections in the market. The cryptocurrency faced selling pressure, driven by macroeconomic concerns and profit-taking after hitting record highs earlier in the week. The price of bitcoin fell by 1.1% to $116,394.87, following a peak of $124,496. At one point, the price dipped as low as $114,706, and ether also saw a decline of 2.5% to $4,354.00, having nearly reached its own all-time high of $4,800 the previous week.

The decline was exacerbated by forced liquidations across the market, with over $500 million in long positions being sold in the past 24 hours. Coin Glass reported that more than 123,836 traders participated in these sales, including $124 million in long bitcoin liquidations and $184 million in long ether liquidations. This trend is indicative of increased market volatility, where traders are forced to sell assets at unfavorable prices to meet margin requirements.

Treasury Secretary Scott Bessent added to the market's unease with comments about the strategic bitcoin reserve established by President Donald Trump, which will be limited to bitcoin forfeited to the federal government. This announcement, coupled with higher-than-expected July wholesale inflation data, raised doubts about the likelihood of a Federal Reserve rate cut in September, further pressuring asset prices.

The broader crypto market also felt the effects, with the CoinDesk 20 index down 1.2%. Related stocks saw mixed performance, with some, like Bitmine Immersion and Bullish, falling significantly, while others such as Coinbase and Galaxy Digital posted modest gains. Market participants are now closely watching the Federal Reserve’s annual economic symposium in Jackson Hole, Wyoming, for signals on future policy moves.

On the technical front, bitcoin’s price action showed signs of weakening. The cryptocurrency briefly dipped below $114,000, with long positions under pressure. Bids were observed forming near the $112,000 level, while the 100-day simple moving average at $110,950 was identified as a potential support barrier. Analysts, including Keith Alan of Material Indicators, noted that the downward pressure is palpable and that bulls are struggling to regain control. Meanwhile, order book liquidity at $105,000 could serve as a buffer against further losses.

Institutional demand for bitcoin remains a key factor in the market’s direction. Despite weakening on-chain fundamentals, ETFs tracking bitcoin and ether have continued to attract inflows. For the week, they recorded $547 million and $2.9 billion in inflows, respectively. However, recent data showed a net outflow of $121 million from these funds, signaling some caution among institutional investors. The sustainability of these inflows will be crucial in determining whether the current correction stabilizes or leads to further consolidation.

The market is also keeping a close eye on developments in the corporate and institutional adoption of bitcoin. With over 10% of the total bitcoin supply now held by corporations, governments, and institutions, initiatives like the proposed Amsterdam Bitcoin Treasury Strategy (AMBTS) by Amdax highlight the growing interest in using bitcoin as a reserve asset. AMBTS aims to raise capital and eventually own at least 1% of the total bitcoin supply, reflecting the broader trend of institutional confidence in the cryptocurrency. These developments underscore the evolving role of bitcoin in the global financial landscape.

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