Bitcoin News Today: Bitcoin's Surge Past $116K Sparks Short Squeeze and Bullish Reckoning

Bitcoin surged past $116,000 this week, driven by optimism around potential Federal Reserve policy changes and a broader bullish sentiment in the macroeconomic environment. The price rise liquidated over $379 million in short positions, with Ether (ETH) accounting for nearly half of those losses after rising nearly 15% to $4,760. According to CoinGlass, the bulk of the short liquidations were concentrated in the $117,000–$118,000 range, where over $259 million in ask liquidity was consumed [1]. The move pushed Bitcoin to an intraday high of $117,300, recovering from a six-week low of $111,600 [1].

The price action coincided with remarks from Federal Reserve Chair Jerome Powell at the Jackson Hole Symposium, where he signaled an openness to rate cuts as early as September. Traders and analysts interpreted the comments as a green light for risk-on assets, with Bitcoin benefiting from the shift in sentiment. Michael van de Poppe, founder of MN Capital, noted that a sweep below $112,000 provided an attractive entry point for buyers and marked the return of the BTC uptrend [1]. Bitwise’s André Dragosch also cited the potential for Bitcoin to reach $200,000 by year-end if the macroeconomic tailwinds persist [1].

While Bitcoin’s performance was robust, the broader crypto market showed signs of consolidation. According to data from CryptoQuant, apparent Bitcoin demand has declined from 174,000 BTC in July to just 59,000 BTC as of the week of August 20, and ETF inflows have slowed to their weakest since April [4]. The market is now in what the firm describes as a “bullish cooldown” phase, with key support levels such as $110,000 under watch [4]. Institutional investors are also shifting strategies, with capital increasingly concentrated in major assets rather than a broad altcoin rally [4].

Among the altcoin performers, OKB and MORPHO led the week’s gains. OKB surged more than 154% in weekly trading, propelled by a large-scale token burn that pushed on-chain assets on OKX’s X Layer network to $84.89 million, a new record [2]. Mitrade Insights reported that OKB’s price had extended beyond the $250 milestone, with momentum indicators like the RSI hovering near overbought levels [3]. MORPHO also saw strong gains, inching closer to a key resistance level of $2.45 after a Golden Cross formation on its 50- and 200-day EMA [3].

The shift in market dynamics was also reflected in the broader ETF landscape. Ether ETFs have attracted significant inflows this month, with over $2.5 billion added to such products, while Bitcoin ETFs have seen net outflows [1]. BlackRock’s Ethereum ETF, launched in April, already accounts for $5.5 billion in open options positions, comparable to 40% of the Deribit platform’s Ethereum activity [1]. Traders are increasingly viewing Ethereum as the more volatile and speculative option, whereas Bitcoin is being treated as a more stable, long-term holding.

Source:

[1] Bitcoin-Volatility Collapse Forces Risk-Loving Traders... (https://finance.yahoo.com/news/bitcoin-volatility-collapse-forces-risk-112008080.html)

[2] OKB Live Price Chart, Market Cap & News Today (https://www.coingecko.com/en/coins/okb)

[3] Crypto Gainers: OKB hits record high as ZEC and... (https://www.mitrade.com/insights/news/live-news/article-3-1060433-20250822)

[4] Asia Morning Briefing: BTC Demand Cools While 'Crypto... (https://www.coindesk.com/markets/2025/08/21/asia-morning-briefing-btc-demand-cools-while-crypto-capital-is-getting-more-selective-okx-s-gracie-lin-warns)