Bitcoin News Today: Bitcoin Struggles Amid Weak Adoption and Bearish On-Chain Signals

Bitcoin remains under pressure despite a recent rebound, as on-chain metrics indicate weak network adoption and bearish momentum [1]. The cryptocurrency fell to as low as $108,760 during Asian trading hours before bouncing to over $110,000. However, Timothy Misir, head of research at BRN, noted that the Relative Strength Index (RSI) is nearing the oversold zone and the Moving Average Convergence Divergence (MACD) is bearish, signaling a lack of buying interest [1]. The Spot Capitalized Value Deficit (CVD) stands at -$199 million, reinforcing the dominance of sellers, while the Daily Active Addresses metric dropped below 700K—further signaling low participation [1].

The broader crypto market reflects similar weakness. The CoinDesk 20 and CoinDesk 80 indices fell 2% and 1.7%, respectively, over the past 24 hours [1]. Futures trading has seen significant liquidations, with $940 million in leveraged positions wiped out, more than $800 million of which came from long positions [1]. Ether (ETH) was the hardest hit, with $320 million in liquidations recorded. Open interest (OI) in BTC remains high near 740K BTC, though it has not managed to attract sustained buying pressure. In contrast, OI for ETH has fallen to 14 million from 14.6 million, and OI in tokens like Solana (SOL), XRP, Dogecoin (DOGE), Cardano (ADA), and Chainlink (LINK) also dropped, pointing to capital outflows [1].

The derivatives market shows mixed signals. While most tokens maintain positive funding rates—suggesting a continued bias toward long positions—derivatives in SHIB, ADA, and SOL are bearish [1]. CME’s BTC futures OI has declined from 145.2K to 137.3K, indicating fading institutional interest in the regulated derivatives space [1]. Meanwhile, options OI continues to climb, reaching its highest levels since late May [1]. On Deribit, the upcoming multibillion-dollar expiry event is skewed toward BTC puts, reflecting heightened bearish expectations [1].

The NFT market has also deteriorated alongside the broader crypto slump. Blue-chip collections such as Pudgy Penguins and Bored Ape Yacht Club (BAYC) have seen steep declines, with Pudgy Penguins dropping 17% to a 10.32 ETH floor and BAYC falling 14.7% to 9.59 ETH [1]. Doodles suffered one of the sharpest drops, falling 18.9% to 0.73 ETH [1]. Secondary projects like Moonbirds and Lil Pudgys also slid by double digits. In contrast, CryptoPunks proved relatively resilient, losing just 1.35% in the week, which has strengthened their status as a defensive asset in volatile markets [1].

Despite the price declines, trading activity on top NFT projects remained robust. Pudgy Penguins, for example, recorded $9.36 million in weekly volume, followed by Moonbirds and CryptoPunks [1]. The overall NFT market capitalization has fallen nearly 5%, now valued at $7.7 billion as of August 26, down from a peak of $9.3 billion on August 13 [1]. The rapid capital outflow underscores the high beta nature of NFT blue chips, with only legacy projects like CryptoPunks showing the liquidity and stability to serve as long-term institutional holdings [1].

Source: [1] Crypto Markets Today: Bitcoin Price Remains Under Pressure (https://www.coindesk.com/markets/2025/08/26/crypto-markets-today-bitcoin-price-remains-under-pressure)