Bitcoin News Today: Bitcoin Slumps 7-9.5% Amid Whale Sales and Macro Uncertainty

Bitcoin, which briefly surged to a record high of $124,533 in early August, quickly retreated in the following days, trading around $115,000 by late August, representing a pullback of approximately 7-9.5% from its peak [1][2][3]. The decline came amid a combination of profit-taking, unwinding of leveraged positions, and macroeconomic uncertainties. Much of the momentum from the previous weeks had been driven by institutional interest, especially in July and early August [4].

A significant portion of the sell-off was attributed to whale activity, as over 30,000 BTC—worth roughly $3.45 billion—was sold in less than a week [5]. This mass offloading added downward pressure, particularly in a market still highly leveraged. According to CryptoQuant, nearly 95% of the liquidated positions during the correction period were longs, with total losses exceeding $1 billion, including $170 million in Ethereum-related liquidations [1].

Analysts suggest that the pullback is more of a short-term reset rather than a fundamental bearish shift in sentiment [1]. The MVRV ratio, which measures the market value of Bitcoin against its realized value, stood at 21%, indicating that most holders are still in profit territory, though this also signals vulnerability to profit-taking [1]. Santiment’s analysis also points to a “mild danger zone” for such activity [1].

Macro factors, particularly the Federal Reserve’s policy uncertainty, have also contributed to the retreat. Mixed inflation and employment data have tempered expectations for aggressive rate cuts, creating a more cautious environment for risk assets like Bitcoin [1]. Although the probability of a September rate cut increased from 12% to 26%, the lack of clarity around the Fed's next move has kept the market volatile [1].

Despite the near-term turbulence, some prominent figures remain optimistic. Anthony Scaramucci, for example, has maintained a strong long-term outlook, predicting significantly higher levels for Bitcoin by year-end [1]. This bullish sentiment is shared by figures like Michael Saylor of MicroStrategy and Cathie Wood of ARK Invest, who view Bitcoin as a valuable store of value and hedge against traditional financial assets [1].

Technically, Bitcoin has faced critical support levels around $112,000, supported by Fibonacci retracement levels and the 50-day exponential moving average [1]. A breakdown below these levels could indicate further weakness, while a firm hold above them could lead to a rebound toward key resistance levels at $120,000 and $124,000 [1].

The broader cryptocurrency market shows mixed signals. While 63 of the top 100 cryptocurrencies remain above their 200-day moving averages—a bullish sign—half now trade below their 50-day averages, indicating short-term weakness [1]. This pattern mirrors dynamics seen in traditional markets, such as the Nasdaq, highlighting a shared sense of caution among investors [1].

Institutional adoption continues to grow, with companies like MicroStrategy increasing their Bitcoin holdings, reinforcing the narrative of Bitcoin as a legitimate financial asset [1]. These developments underscore its potential role in diversified investment portfolios and as a hedge against macroeconomic uncertainties [1].

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] $5,690,000,000 BTC Hit Exchanges at Loss in Just 48 Hours (https://www.tradingview.com/news/u_today:7b5f71bdf094b:0-5-690-000-000-btc-hit-exchanges-at-loss-in-just-48-hours-details/)

[5] Bitcoin Retreats to $115,000 as Whales Unload Billions (https://cryptodnes.bg/en/bitcoin-retreats-to-115000-as-whales-unload-billions/)