Bitcoin News Today: Bitcoin Slides 3.92% as Institutional Demand Wanes and Liquidity Dries Up

Bitcoin faces mounting downward pressure as it continues to trade below its record high of $123,091, reached in July 2025. The cryptocurrency’s price fell nearly $9,000 in the following weeks, driven by a significant liquidity inventory collapse and inconsistent institutional demand [1]. Market participants now closely monitor whether this trend will persist or reverse amid mixed signals from large-scale investors.

The liquidity inventory ratio—a key indicator of market depth—hit historic lows in July 2025, signaling a sharp decline in the availability of Bitcoin for sale relative to demand [1]. This imbalance disrupted typical price dynamics, where low supply usually supports higher prices. Instead, weak buying interest from ETFs and large institutional players contributed to a sharp correction.

Institutional demand has been particularly volatile. ETF inflows fluctuated throughout the month, alternating between periods of strong buying and abrupt pullbacks, which failed to stabilize the price. Large accumulators, such as Metaplanet, have recently resumed purchases, acquiring 463 BTC on August 4, suggesting some return of confidence [1]. However, these efforts have yet to reverse the broader bearish trend.

Bitcoin’s trading volume increased by 13.63% to $55.96 billion in early August, yet the price declined by 0.22% in the last 24 hours and fell 3.92% over the past week [1]. Analysts such as Robert Kiyosaki have forecast further declines, suggesting Bitcoin could fall to $90,000, which he views as a potential buying opportunity [1]. The price currently hovers around $114,314.30, with support levels near $110,000 considered crucial for near-term stability.

Market liquidity barriers have also hindered bullish momentum, with analysts highlighting $116,000 as a critical level to watch. If Bitcoin breaks below $114,000, it could trigger a more pronounced bearish phase [4]. The broader institutional landscape remains uncertain, with Ethereum ETFs experiencing $465 million in outflows on August 5, despite a 4% price gain [3]. Over the preceding three days, Ethereum spot ETFs recorded $129 million in net outflows, reflecting broader institutional hesitancy [8].

Ethereum, while under similar pressure, has shown signs of resilience. On-chain transaction volume hit 1.7 million per day—the highest in over a year—indicating continued utility in decentralized applications and smart contracts [8]. Institutional confidence is also evident in Ethereum’s strategic reserve, which grew from $200 million in April to $10 billion in August, a 4,900% increase [8].

Derivatives and options markets reflect a cautious stance. The three-month futures premium for ETH remains at 5%, suggesting a bearish bias [8]. Meanwhile, the 25% delta skew in the options market reached 6%, signaling balanced risk assessment but no strong directional bias [8]. Continued demand for protective put options indicates traders are hedging against further downside risks.

Technical analysis suggests Bitcoin is consolidating within a symmetrical triangle, with potential for a breakout either above $114,940 or below $114,000 [9]. This pattern typically remains neutral until a clear directional movement occurs. Ethereum faces key resistance at $3,800, with analysts anticipating consolidation in the $3,400–$3,800 range until more institutional support emerges [8].

The broader market remains in a holding pattern, with both Bitcoin and Ethereum awaiting catalysts that could determine the next phase of price action. Institutional demand remains a key variable, and liquidity conditions—along with technical levels—will continue to shape market expectations [4][5][8].

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Source:

[1] Bitcoin News Today: Bitcoin Volatility Hits Record Low ... (https://www.ainvest.com/news/bitcoin-news-today-bitcoin-volatility-hits-record-institutional-strategy-shifts-2508/)

[3] Ethereum ETFs Lose $465M Despite 4% Price Gain (https://www.ainvest.com/news/bitcoin-news-today-ethereum-etfs-lose-465m-4-price-gain-2508/)

[4] Cryptocurrency Live News & Updates : Bitcoin Could ... (https://m.economictimes.com/crypto-news-today-live-04-aug-2025/liveblog/123081462.cms)

[5] Bitcoin ETF Netflows Could Signal Market Sentiment as ... (https://www.bitget.com/news/detail/12560604895183)

[8] Ethereum Battles Above $3600, Institutional Demand and ... (https://www.fxleaders.com/news/2025/08/05/ethereum-battles-above-3600-institutional-demand-and-network-activity-signal-mixed-outlook/)

[9] Bitcoin is trading near $114000 with a neutral bias amid ... (https://www.instagram.com/p/DM762mzqsKl/)