Bitcoin News Today: Bitcoin Surges Past $116,000 Driven by Institutional ETF Inflows

Bitcoin surged past $116,000 in recent trading, driven by renewed institutional buying, signaling a shift in market dynamics after a period of consolidation. The cryptocurrency gained nearly 2% over the past 24 hours, pushing its market capitalization to $2.31 trillion, despite a slight decline in trading volume. This rebound came after Bitcoin dipped below $113,000 earlier in August, with the price stabilizing and showing signs of sustained buyer interest [1].

A key driver of the recent momentum has been the return of net inflows into spot Bitcoin ETFs. Following four consecutive days of outflows, the market saw a significant infusion of capital on August 5, led by BlackRock’s IBIT ETF, which received $91.5 million in new investments. Notably, Trivest Advisors, a Hong Kong-based firm, allocated 8% of its $1.2 billion portfolio to IBIT, highlighting the growing appetite for Bitcoin among institutional players in the Asia-Pacific region [1].

Collectively, these ETFs now hold around 1.27 million BTC, or approximately 6% of the total circulating supply. This concentration of liquidity is reducing selling pressure on exchanges and reinforcing Bitcoin’s technical resilience. The price has managed to hold above key short-term support levels and is currently hovering near the 30-day simple moving average. $116,900 has emerged as a critical resistance level to watch in the coming days [1].

Market sentiment is gradually turning bullish. The Fear & Greed Index has moved from neutral to 54, indicating a shift toward greed territory. However, technical indicators remain mixed. While the RSI approaches 68—a sign of strength—the MACD histogram remains slightly negative, pointing to ongoing consolidation [1]. Analysts have also noted that long-term Bitcoin holders have realized over $44 million in profits in the past two days, suggesting that while accumulation is ongoing, some profit-taking is also taking place [1].

Looking ahead, the next key price level for Bitcoin will be $116,900, the cost basis for many short-term holders. A daily close above this level could trigger short-covering and potentially push the price toward the $120,000 range. Conversely, failure to hold above this level may result in another retest of the $112,000 support zone [1].

The market is also watching for signs of potential supply-side pressure, as recent on-chain data has shown a transfer of 517 BTC from Bhutan-linked wallets. If these funds make their way onto exchanges, they could introduce additional selling pressure [1].

In conclusion, Bitcoin’s recent surge past $116,000 reflects a combination of strong institutional buying and technical stabilization. ETF inflows are providing crucial support, and market participants are closely monitoring key resistance and support levels. While sentiment is gradually turning bullish, the battle around $116,900 will likely determine the next major move in Bitcoin’s price trajectory [1].

Source:

[1] title: Bitcoin Surges Past $116,000 with Fresh Institutional Buying

(https://coinmarketcap.com/community/articles/68948aa8ab27187a281f7a84/)