Bitcoin News Today: Bitcoin's Volatility Masked by a Quiet Bull Case Building in Plain Sight

Bitcoin approached $113,000 on Tuesday amid growing macroeconomic concerns, including inflation, trade policies, and investor sentiment ahead of key U.S. Federal Reserve events. The cryptocurrency had surged to a record high of over $124,000 the previous week but has since experienced a pullback, with traders liquidating more than $530 million in long positions across major tokens like Bitcoin and Ethereum [3]. The price drop reflects heightened volatility as traders brace for critical statements from Federal Reserve Chair Jerome Powell at the Jackson Hole symposium, which could influence the trajectory of interest rates and inflation expectations [5].

Analysts at Bernstein maintain a bullish outlook, projecting that Bitcoin could reach $150,000 to $200,000 within the next six to 12 months [1]. Their analysis hinges on the belief that the U.S. government, particularly under President Donald Trump, is actively positioning the country as a global leader in the crypto space through regulatory reforms and initiatives such as “Project Crypto,” aimed at creating clear and simple rules for digital assets [1]. Additionally, the recent enactment of the GENIUS Act, which established a federal framework for dollar-backed stablecoins, has further bolstered confidence in the sector [1].

The current market correction has not dampened long-term optimism. Historical patterns suggest that extreme volatility is often followed by significant rebounds. For instance, a similar correction in April saw Bitcoin recover from below $74,000 to nearly $104,000 within a month. The current 30-day options delta skew metric for Bitcoin has hit 12%, signaling heightened investor fear [2]. However, this level is typically short-lived and has historically coincided with major recoveries in the price of Bitcoin [2]. The market appears to be navigating a broader correction rather than the end of a bull cycle, with many investors viewing the pullback as a strategic cooldown.

Macroeconomic factors continue to play a significant role in shaping market sentiment. U.S. import tariffs on aluminum and steel products have raised concerns over inflationary pressures and supply chain disruptions. The Trump administration’s push for aggressive fiscal policies and interest rate cuts adds another layer of uncertainty [4]. If the Fed were to comply with the administration’s demands and cut rates by as much as 300 basis points, it could trigger a surge in inflation and weaken the U.S. dollar, which might benefit Bitcoin as an inflation hedge [4]. Even without immediate rate cuts, the combination of tariffs and fiscal expansion could still lead to a gradual increase in inflation, further supporting the case for Bitcoin as a long-term store of value [4].

Investor behavior also highlights the market’s resilience. Despite the drop in Bitcoin’s price, crypto ETFs and corporate adoption of digital assets remain strong. ETFs tracking Bitcoin and Ethereum logged significant weekly inflows, with Ethereum ETFs setting a record for consecutive weeks of positive flows [3]. Meanwhile, corporate entities continue to build bitcoin treasuries, following in the footsteps of companies like MicroStrategy [1]. This trend underscores a broader shift in perception, as institutions increasingly view Bitcoin as a legitimate asset class with long-term value [1].

Source: [1] Bitcoin could reach $200,000 within 6 months during 'long exhausting crypto bull market' (https://finance.yahoo.com/news/bitcoin-could-reach-200000-within-6-months-during-long-exhausting-crypto-bull-market-173358527.html) [2] Why is Bitcoin crashing and will $112K be the final bottom? (https://cointelegraph.com/news/why-is-bitcoin-crashing-and-will-112k-be-the-final-bottom) [3] Bitcoin sinks to $115000 after hitting its newest record, as... (https://www.cnbc.com/2025/08/18/crypto-market-today.html) [4] All roads lead to inflation: Fed cut or not, Bitcoin may stand... (https://cointelegraph.com/news/all-roads-lead-to-inflation-fed-cut-or-not-bitcoin-may-stand-to-gain) [5] Bitcoin Sinks as Concerns Over Inflation, Economic Data Mount (https://finance.yahoo.com/news/bitcoin-sinks-concerns-over-inflation-004918247.html)