Bitcoin News Today: Bitcoin Volatility Intensifies as Whales Sell and Fed Rate Cut Looms

Bitcoin’s price remains highly volatile in early August 2025, oscillating around the key level of $116,500, which has emerged as a focal point for both retail and institutional traders. After dipping below $112,000 last week, Bitcoin rebounded toward $115,000, triggering widespread selling across market segments. On-chain data indicates that short positions are likely to be liquidated near this level, amplifying price swings. Analysts emphasize that the current market environment differs significantly from the retracement seen in January 2025, with the 50-day EMA now acting as support rather than resistance, suggesting a potential floor near $110,000 in the event of a further pullback [1].

The Federal Reserve’s September meeting is closely watched by investors, with growing consensus pointing to a 0.25% rate cut. This expectation is fueled by mixed inflation data and a resilient labor market, though political pressures and criticism of Fed Chair Jerome Powell add uncertainty. The CME Group’s FedWatch Tool shows a strong probability of easing, which could influence Bitcoin’s volatility and sentiment in the near term [2]. Market strategist CrypNuevo notes that the evolving macroeconomic context supports a more bullish outlook compared to earlier in the year, as the 50-day EMA provides a structural buffer for price action [3].

Large and small Bitcoin holders have reacted to the recent price dips with coordinated selling. On August 1 alone, over 40,000 BTC were transferred to exchanges at a loss, and the exchange whale ratio has reached historically high levels, signaling intensified selling pressure from large investors [4]. According to CryptoQuant’s analysis, such patterns are often precursors to further price declines, as whale activity can amplify market sentiment [5]. Arab Chain warns that continued whale selling could deepen the correction, making it essential for investors to monitor large holder movements.

Despite short-term selling, Bitcoin’s demand remains robust. The Apparent Demand ratio, which measures newly mined Bitcoin against long-dormant supply, remains positive. Over the past 30 days, approximately 160,000 BTC have been accumulated, with OTC desk holdings exceeding 500,000 BTC—up sharply from 145,000 BTC in 2021 [6]. Analyst Darkfost highlights that these accumulation trends suggest sustained institutional and private investor confidence, even amid volatility.

Looking ahead, Bitcoin’s price trajectory will depend on key technical levels, macroeconomic developments, and the Fed’s policy direction. With $116,500 serving as a critical pivot point, traders remain cautious as short-term selling pressure collides with long-term demand fundamentals. The interplay between these factors will likely shape the market’s next move in the coming weeks [7].

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Source:

[1] (https://en.coinotag.com/bitcoin-faces-mixed-outlook-amid-august-volatility-and-potential-federal-reserve-rate-cut/)