Bitcoin News Today: Bitcoin Sellers Signal Downturn as Fear Rises Ahead of Fed Watch

Bitcoin holders are selling at a loss amid growing anticipation for the Federal Reserve’s upcoming monetary policy decisions, signaling a shift in market dynamics. According to CryptoQuant analyst Kerem, Bitcoin’s short-term holders (STHs) have returned to loss realization for the first time since January 2025, a trend that historically coincided with significant market corrections [5]. This development marks a critical turning point, as STHs previously sold at a loss during the deepest correction in the current cycle before a strong rebound. The current scenario, however, remains uncertain, as extended periods of loss realization could precede a deeper bearish phase, while short-term dips may act as a reset before a sustained rally [5].

Bitcoin’s price action has shown increased volatility as it consolidates near the $115,000 level, failing to hold above $120,000. The cryptocurrency dropped below $113,000 earlier in the week, triggering over $113 million in leveraged long position liquidations [1]. This sell-off was attributed to heightened macroeconomic concerns, including U.S. trade policies and the U.S. Securities and Exchange Commission’s (SEC) investigation into Alt5 Sigma, a company linked to Donald Trump’s World Liberty Financial [1]. The investigation, combined with a report from MIT NANDA showing that most companies have not achieved significant revenue growth from AI, further dented investor sentiment [1].

The U.S. imposition of new 50% import tariffs on aluminum and steel products also contributed to risk aversion in global markets, raising concerns about supply chain disruptions and inflationary pressures. UBS recently raised its gold price forecast to $3,700 by September 2026, citing weak economic growth, a softer U.S. dollar, and concerns over U.S. fiscal sustainability [1]. The growing unease has also been reflected in Bitcoin derivatives markets, where the BTC options skew metric turned bearish, reaching 12%, its highest level in over four months [1]. This level of fear is historically rare and typically does not persist for long, but it signals a significant shift in investor behavior.

Despite the short-term challenges, the broader market structure still supports a long-term bullish trend. Bitcoin’s failure to reclaim key resistance levels, such as $123,217, has weakened bullish momentum indicators, but medium-term support remains intact [5]. Additionally, recent inflows into Bitcoin and Ethereum ETFs suggest continued institutional and corporate interest in the asset class. For the week ending August 18, Bitcoin ETFs recorded $547 million in net inflows, while Ethereum ETFs saw a record $2.9 billion in weekly inflows [2]. These figures highlight the resilience of the crypto market and the potential for a rebound amid corrections.

With the Federal Reserve’s annual symposium in Jackson Hole, Wyoming, approaching, investors are closely watching for signals on the future path of interest rates and the health of the U.S. economy. The release of the July FOMC meeting minutes on August 20 will provide further clarity, while Fed Chair Jerome Powell’s speech on August 23 could influence market sentiment in the coming weeks [4]. Until then, Bitcoin and Ethereum remain in a consolidation phase, with key support and resistance levels serving as critical indicators of the market’s direction. For now, the focus remains on whether this correction will be a temporary reset or the beginning of a deeper downturn.

Source: [1] Why is Bitcoin crashing and will $112K be the final bottom? (https://cointelegraph.com/news/why-is-bitcoin-crashing-and-will-112k-be-the-final-bottom) [2] Bitcoin sinks to $115000 after hitting its newest record, as ... (https://www.cnbc.com/2025/08/18/crypto-market-today.html) [4] Treasury yields edge higher as traders gear up for Fed ... (https://www.cnbc.com/2025/08/18/treasury-yields-dip-as-traders-gear-up-for-fed-minutes.html) [5] Bitcoin Short-Term Holders Flip To Losses For First Time ... (https://www.mitrade.com/insights/news/live-news/article-3-1052333-20250820)