Bitcoin News Today: Bitcoin's Six-Week Low Exposes Market's Fragile Leverage Bubble

Bitcoin's price has fallen below $111,000, marking its lowest level since July 10. The cryptocurrency, which had stabilized around $115,000, experienced a sharp decline over the weekend, hitting a six-week low of $110,600. This sudden drop followed a brief rebound after a dovish speech by Federal Reserve Chair Jerome Powell, which had initially pushed the price above $117,000. However, the gains were short-lived, with the bears reemerging to drive the price downward.

The crash triggered significant market turbulence, particularly for leveraged traders. According to data from CoinGlass, over $300 million in liquidations occurred within a single hour, with long positions accounting for roughly 90% of the total. The liquidation heat map revealed that the single largest liquidation event occurred on OKX, where a position worth more than $12 million was wiped out. The overall impact on the market has been substantial, with over 130,000 traders liquidated on a daily scale.

This volatility has extended beyond Bitcoin, dragging down altcoins including Ethereum (ETH). While ETH had briefly surged to nearly $5,000, it later retreated to around $4,800 as of the latest reports. The broader cryptocurrency market has mirrored Bitcoin’s downward trend, highlighting the interconnected nature of crypto assets and the vulnerability of over-leveraged positions in a rapidly shifting market environment.

Corporate developments have also influenced Bitcoin’s trajectory. Japanese firm Metaplanet recently announced the purchase of 103 BTC, valued at $11.7 million, bringing its total holdings to 18,991 BTC worth approximately $2.2 billion. This move coincided with the company’s upgrade to mid-cap status in the FTSE Japan Index. Metaplanet’s aggressive Bitcoin acquisition strategy aims to accumulate 210,000 BTC, signaling continued institutional interest in the asset despite the recent price drop. The company’s inclusion in the FTSE Japan Index may encourage passive flows from institutional investors, offering indirect Bitcoin exposure through traditional equity channels.

The broader institutional adoption of Bitcoin is also evident in the actions of other entities. For instance, American Bitcoin, co-founded by Eric Trump and Donald Trump Jr., is exploring acquisitions of publicly listed firms in Japan and Hong Kong to serve as digital asset treasury vehicles. Eric Trump, who recently joined Metaplanet as a strategic adviser, is set to attend a shareholder meeting in Tokyo. These developments underscore the increasing intersection between traditional finance and Bitcoin treasury strategies, particularly as Asian markets continue to attract digital asset firms.

Amid this institutional activity, market dynamics have shifted as Bitcoin’s onchain demand has waned. Data from Galaxy Research shows that median daily transaction fees have dropped by more than 80% since April 2024, with nearly half of recent blocks clearing at just 1 satoshi per vbyte. This decline in onchain demand contrasts sharply with previous bull cycles, where rising prices were typically accompanied by increased transaction fees and network congestion. Instead, the current rally in Bitcoin’s price is being driven by custodial inflows, while retail activity has shifted to faster and cheaper networks like Solana.

For Bitcoin miners, this shift presents significant challenges. With block rewards halved to 3.125 BTC and fees contributing less than 1% of block revenue in July, mining profitability has declined. As a result, listed miners are increasingly diversifying into artificial intelligence (AI) and high-performance computing (HPC) hosting to mitigate risks associated with declining Bitcoin yields. This trend has been rewarded by equity markets, with the CoinShares Bitcoin Mining ETF gaining nearly 22% despite a year-on-year price decline for BTC.

The current state of the Bitcoin market highlights a complex interplay between institutional adoption, shifting retail dynamics, and evolving onchain behavior. While the price has dipped below key levels, the broader ecosystem continues to show resilience, with corporate treasury strategies and diversification efforts among miners shaping the future landscape of the cryptocurrency market.

Source:

[1] $300M in Longs Liquidated in 1 Hour: Bitcoin Crashes ... (https://cryptopotato.com/300m-in-longs-liquidated-in-1-hour-bitcoin-crashes-ethereum-rejected-at-5k/)

[2] Bitcoin News: Eric Trump's BTC Price Predictions ... (https://www.coindesk.com/business/2025/08/23/eric-trump-makes-bitcoin-price-predictions-as-he-reportedly-gets-ready-to-visit-metaplanet)

[3] Asia Morning Briefing: Bitcoin's ETFs Kill the Transaction ... (https://www.coindesk.com/markets/2025/08/25/asia-morning-briefing-bitcoin-s-etfs-kill-the-transaction-fees-punishing-the-miners-more)

[4] Bitcoin Price Drops Below $112000 As Metaplanet ... (https://bitcoinmagazine.com/markets/bitcoin-price-drops-below-112000-as-metaplanet-announces-to-buy-11-7m-worth-of-bitcoin)

[5] Asia Morning Briefing: BTC Demand Cools While 'Crypto ... (https://www.coindesk.com/markets/2025/08/21/asia-morning-briefing-btc-demand-cools-while-crypto-capital-is-getting-more-selective-okx-s-gracie-lin-warns)

[6] Bitcoin Price, BTC Price, Live Charts, and Marketcap (https://www.coinbase.com/en-ca/price/bitcoin)

[7] Bitcoin's Realized Cap Tops $1 Trillion as $120K Short ... (https://www.bitget.com/news/detail/12560604928774)