Bitcoin News Today: Bitcoin's Sustained Slide Sparks Fears of Institutional Exit and Investor Panic

Bitcoin’s price trajectory has faced renewed downward pressure as recent market developments raise concerns over sustainability and investor sentiment. As of August 21, 2025, Bitcoin (BTC) traded at over $114,000, representing a 0.6% increase in the last 24 hours. However, this modest gain is overshadowed by signs of weakening demand for leveraged Bitcoin exposure, particularly through corporate treasury models like MicroStrategy’s. The company’s market premium has dropped sharply from 3.4x to 1.58x, signaling a breakdown in the feedback loop that previously amplified its influence on the asset’s price dynamics [1].

The recent decline in the premium correlates with broader shifts in institutional and retail investor behavior. Open interest in Bitcoin has surged past $40 billion, an increase of 150% from August 2024 levels. This sharp rise, combined with elevated financing rates, has raised concerns about potential cascading liquidations if price corrections intensify. The cryptocurrency has already retreated from its August 13 all-time high of $124,474 and is now approaching the $113,000 level. Analysts highlight the critical support zone around $110,000 as a potential short-term floor, with further declines risking a retest of the $98,200 level or even the April 2025 lows near $75,000 [1].

Amid these technical concerns, institutional demand remains robust, though with signs of volatility. Exchange-traded funds (ETFs) and institutional investors now hold over 1.3 million BTC, with U.S.-based spot Bitcoin ETFs collectively holding $146 billion in assets, equivalent to 6.47% of Bitcoin’s total market capitalization. However, recent flow data suggests waning enthusiasm at current price levels. Spot Bitcoin ETFs experienced outflows of $645 million during the week of August 19–21, reversing two weeks of inflows totaling around $800 million. Fidelity’s Fidelity Wise Origin Bitcoin Fund (FBTC) led this exodus with outflows of $247 million, followed closely by Grayscale’s Bitcoin Trust (GBTC), which lost $116 million in the same period [1].

The broader market sentiment has also shifted. The Crypto Fear & Greed Index, a real-time sentiment tracker, dipped into the “Fear” zone on August 21, with a score of 44, indicating a significant cooling in optimism following a month-long “Greed” phase. This shift coincided with sharp price corrections, as Bitcoin and Ethereum fell 8.3% and 10.8%, respectively, over the previous three days. Despite these outflows, some analysts caution against overreacting. “A few daily ETF outflows doesn’t mean TradFi is abandoning crypto,” noted Ryan Park of 21Rates on X, emphasizing that the market remains active with new participants still making mistakes [3].

Looking ahead, the critical test for Bitcoin will come at the Short-Term Holder Realized Price (STH RP) of $108,600. This level represents the average price of BTC held by investors who acquired the asset within the last 155 days and has historically served as a key support level during bull markets. A successful defense of this level could allow Bitcoin to re-test previous highs, while a breakdown could trigger further declines to $98,200 or potentially the $75,000 range, where the April 2025 cycle low was recorded. Investors are advised to closely monitor both price action and ETF flow data for early signals about the asset’s near-term direction [1].

Source: [1] Bitcoin Faces Downward Pressure Amid ETF Outflows and Microstrategy Concerns (https://www.fxleaders.com/news/2025/08/21/bitcoin-faces-downward-pressure-amid-etf-outflows-and-microstrategy-concerns/) [2] Bitcoin ETF Flow (US$m) (https://farside.co.uk/btc/) [3] Bitcoin, Ether ETFs post almost $1B outflows as prices slide (https://cointelegraph.com/news/crypto-funds-bleed-bitcoin-outflows-surge-5x-ether-outflows-double)