Bitcoin News Today: Bitcoin Stuck Near $114,000 as ETF Outflows and Weak Volume Weigh on Market

Bitcoin entered a critical “trapdoor” zone on August 7, 2025, as the price hovered near $114,000 amid weak trading volume and continued outflows from crypto ETFs [1]. The asset appears stuck in a low-liquidity range between $110,000 and $116,000, raising concerns among traders that a lack of demand could lead to further downward pressure [1]. Despite some short-lived rallies—such as Ethereum briefly rising above $3,700—overall market momentum remains muted, with investors adopting a cautious stance [1].

While Bitcoin’s inability to break decisively in either direction signals a lack of conviction, other segments of the crypto market showed mixed performances [1]. Layer 2 protocols like Polygon (POL) and Mantle (MNT) saw gains of more than 8%, while CeFi-related tokens like BNB and CRO posted modest increases [1]. In contrast, sectors such as Meme, PayFi, and AI-based tokens faced declines, reflecting the fragmented nature of market sentiment [1].

Derivatives positioning and ETF outflows have further highlighted the fragile environment in which crypto assets are operating [1]. Derivatives markets are showing signs of caution, and ETFs continue to experience net redemptions, suggesting that investors are hedging against broader macroeconomic risks [1]. This trend marks a shift from the more bullish sentiment seen earlier in 2025 and points to a growing wariness among market participants.

The “air gap” phenomenon—characterized by thin order books and limited liquidity—has become a key concern as Bitcoin remains range-bound around $114,000 [1]. Traders are wary that a sudden move in either direction could trigger rapid and unpredictable price swings if liquidity dries up entirely [1]. This uncertainty is compounded by broader macroeconomic risks, particularly fears of stagflation, which have weighed on risk assets globally [1].

On August 6, Bitcoin fell to $113,000 amid rising stagflation concerns, reinforcing the fragile state of risk-on sentiment [1]. The interplay between macroeconomic variables and crypto prices remains a defining factor in the market’s near-term trajectory [1]. While some analysts have speculated about the impact of potential U.S. policy shifts under a second Trump administration, these remain speculative and have yet to translate into direct market movement [1].

As the market remains in a holding pattern, the key question is whether demand will return to support Bitcoin above $114,000 or whether the $110,000 level will be tested in the coming days [1]. Traders are closely monitoring price action and broader macroeconomic developments for any signs of conviction that could tip the balance either way.

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[1] [LIVE] Crypto News Today: Latest Updates for August 07, 2025 – BTC Enters ‘Trapdoor’ Territory as ETF Outflows, Weak Volume Weigh on Market (https://cryptonews.com/news/live-crypto-news-today-latest-updates-for-august-07-2025/)

[2] Latest Updates for August 06, 2025 – Crypto Market Sinks as Stagflation Fears Mount, BTC Falls to $113K, XRP Drops 4% (https://cryptonews.com/news/live-crypto-news-today-latest-updates-for-august-06-2025/)