Bitcoin News Today: Bitcoin Surpasses $118K as Trading Volume Hits $107.8 Billion Amid $1B Liquidations

Trading volume remains a critical metric in the cryptocurrency market, serving as a barometer for liquidity, investor sentiment, and overall market activity. Major exchanges such as Binance and Coinbase, alongside data platforms, consistently monitor and report this indicator, reflecting its enduring significance in both retail and institutional trading environments. The measure—defined as the total number of coins exchanged between buyers and sellers over a given period—offers insights into market behavior without undergoing any recent redefinitions or shifts in importance [1].

Recent events have reinforced the role of trading volume in shaping price action and liquidity dynamics. Robinhood reported a 217% year-over-year increase in crypto trading volume in July, reaching $16.8 billion, underscoring the growing influence of retail activity in assessing market trends [2]. On the institutional side, Coinbase disclosed that 75% of its Bitcoin trading volume originated from institutional investors, a factor historically associated with upward price momentum in the following week [3]. This highlights the dual role of trading volume as both a liquidity gauge and a signal of broader market demand.

The interplay between trading volume and price volatility has been particularly evident in Bitcoin’s recent performance. After hitting a record high of $124,474, the price fell below $118,000 amid a surge in trading volume, reaching $107.8 billion in 24 hours. The sharp decline triggered over $1 billion in leveraged positions being liquidated in a single day, reflecting heightened market uncertainty and risk-off sentiment across both traditional and crypto markets [4].

Macro factors also played a role, with hotter-than-expected U.S. inflation data amplifying concerns over broader economic stability. This contributed to a breach of the $118,000 support level, a key psychological barrier for bullish sentiment. Meanwhile, net taker volume remained negative, indicating ongoing selling pressure and a lack of clear directional bias in the market [5].

Traders and analysts continue to emphasize the importance of tracking trading volume in conjunction with price action and broader macroeconomic developments. A retest of the $120,000 threshold could signal a return to bullish momentum, but a sustained drop below $115,000 may push Bitcoin further toward the $110,000 level. The trajectory will depend heavily on upcoming inflation and interest rate data, which remain central to near-term market sentiment.

Despite the volatility, trading volume remains a foundational element in understanding and predicting market movements. Its continued prominence in both retail and institutional strategies reaffirms its value as a key market indicator in the evolving cryptocurrency landscape [6].

Source:

[1] title: Crypto Trading Volume Remains Key Market Indicator (https://coinmarketcap.com/community/articles/689e69190092c3341a487529/)

[2] title: Robinhood Crypto Volume Hits $16.8 Billion in July Up 217% Year-Over-Year (https://www.ainvest.com/news/robinhood-crypto-volume-hits-16-8-billion-july-217-year-year-2508/)

[3] title: Coinbase's SWOT Analysis: Crypto Exchange Stock Evolves Amid Market Shifts (https://www.investing.com/news/swot-analysis/coinbases-swot-analysis-crypto-exchange-stock-evolves-amid-market-shifts-93CH-4194260)

[4] title: Bitcoin Plunges Below $118K as Inflation Jitters and $1B Liquidations Shake Markets (https://bravenewcoin.com/insights/bitcoin-btc-price-today-bitcoin-plunges-below-118k-as-inflation-jitters-and-1b-liquidations-shake-markets)

[5] title: Bitcoin Institutional Demand Points to Higher BTC Prices (https://cointelegraph.com/news/bitcoin-institutional-volume-hits-75-on-coinbase-new-btc-price-signal)

[6] title: Bitcoin Market Mood Sours As Net Taker Volume Remains Negative (https://www.mitrade.com/insights/news/live-news/article-3-1036205-20250813)