Bitcoin News Today: Bitcoin Slides to $113,721 as Profit-Taking and ETF Outflows Drive 5% Weekly Drop

Bitcoin has experienced a sharp pullback in recent trading sessions, trading at $113,721 after reaching a record high of $124,128 earlier in August 2025. The price has dropped 1.5% in the last 24 hours and has fallen over 5% for the week, marking the first significant correction after a brief bullish run. Analysts have identified several key factors contributing to this selloff.

One of the primary drivers is large-scale profit-taking by long-term holders. After Bitcoin's price surged past $124,000, many investors with long-term positions took the opportunity to lock in gains. Such activity is common in market cycles but can contribute to downward pressure when executed on a large scale. Simultaneously, short-term holders have been offloading their positions at a loss. On-chain data from CryptoQuant indicates that approximately 50,026 BTC—valued at roughly $5.69 billion—moved from short-term holders to exchanges within just two days. This suggests panic selling among retail investors who may be less prepared for the volatility inherent in cryptocurrency markets [1].

Institutional activity has further compounded the downward trend. U.S.-listed Bitcoin ETFs have seen a three-day streak of outflows, with the latest session recording $523 million in net outflows. This brings total outflows for the period to nearly $660 million, reversing a prior week’s inflow trend and signaling a shift in institutional sentiment. ETFs are often viewed as indicators of institutional confidence, and the current outflows suggest reduced interest or caution among large investors [1].

In addition to profit-taking and ETF outflows, weakening overall demand is also contributing to the bearish momentum. On-chain data shows that both ETFs and corporate buyers are not purchasing Bitcoin at the same pace as before. This cooling in demand, combined with the ongoing selling pressure, has created a more bearish market environment. Retail sentiment has also deteriorated. Santiment data indicates that traders have turned bearish as Bitcoin slides toward $113,000, with social media reflecting the most pessimistic mood since late June 2025, a period marked by geopolitical concerns that triggered a similar selloff [1].

Despite these bearish signals, some analysts remain cautiously optimistic. Technical analyst Rekt Capital has drawn parallels between the current pullback and historical patterns observed in 2017 and 2021. In both cycles, similar retracements occurred at this stage, and were followed by significant rallies that pushed Bitcoin to new all-time highs. If this pattern repeats, the current correction could be seen as a necessary consolidation phase before another leg higher [1].

Source: [1] Why is Bitcoin down today? Here are three key drivers of the $113,000 drop (https://crypto.news/why-is-bitcoin-down-today-here-are-three-key-drivers-of-the-113000-drop/)