Bitcoin News Today: Bitcoin Whales Flip to ETH as Bull Market Faces Identity Crisis

Bitcoin's price has retreated below $111,000 amid growing concerns over whale sell-offs and a broader market cooldown, with institutional investors and large holders reportedly offloading portions of their holdings. Data from on-chain analytics firm CoinGlass shows $640 million in long liquidations in a 24-hour period, reflecting heightened volatility and uncertainty as traders brace for potential further downward movement [1]. The recent dip has brought renewed focus on Bitcoin whales, with a notable entity offloading approximately $2.59 billion in BTC while simultaneously accumulating Ether (ETH), sparking debate on the health of the current bull market [1].

The pullback has coincided with a significant reevaluation of investor sentiment across various Bitcoin wallet cohorts. According to analysis from CryptoQuant, smaller hodlers—those holding up to 10 BTC—remain in accumulation mode, contrasting with larger wallet holders who have shifted to profit-taking behavior. Specifically, wallets holding between 10 and 100 BTC have moved toward distribution as prices hit $118,000, indicating a more cautious approach from mid-sized investors [1]. Meanwhile, those with balances between 100 and 1,000 BTC have shown mixed signals, reflecting a degree of indecision in the market. CryptoQuant notes that while distribution remains dominant, its intensity is weakening, and the $105,000 level is viewed as a critical support zone [1].

The price weakness has also extended to Bitcoin ETFs, with significant outflows reported. Farside Investors data indicates that spot Bitcoin ETFs experienced $523 million in outflows on a single day, marking a fourfold increase from the previous day. Ether ETFs also recorded substantial outflows, doubling to $422 million [3]. Leading providers like Fidelity and Grayscale saw the bulk of these outflows, with Fidelity alone recording over $400 million in withdrawals. The cumulative three-day outflows of $1.3 billion have coincided with Bitcoin and Ether price corrections of 8.3% and 10.8%, respectively [3]. The trend highlights a shift in institutional positioning, with investors taking a more defensive stance ahead of key macroeconomic events, including the Federal Reserve's Jackson Hole symposium.

The macroeconomic backdrop has also played a critical role in shaping investor behavior. The Federal Reserve’s upcoming release of the July Personal Consumption Expenditures (PCE) index—its preferred inflation gauge—has intensified speculation around potential rate cuts. Market odds of a 0.25% rate cut in September have risen to nearly 90% according to the CME Group FedWatch Tool [1]. However, analysts caution that any decision may be influenced by the latest inflation data, with some suggesting that the Fed may still adhere to a more hawkish stance despite market expectations. This uncertainty has contributed to a volatile trading environment, where Bitcoin’s price has been highly sensitive to macroeconomic cues.

On the corporate front, Japan-based Metaplanet has further expanded its Bitcoin holdings by purchasing an additional 103 BTC, valued at approximately $11.7 million, bringing its total holdings to 18,991 BTC, worth around $2.2 billion [2]. The company’s inclusion in the FTSE Japan Index has added a regulated and institutional route for Bitcoin exposure, potentially drawing passive inflows that could influence both equity and cryptocurrency markets. Meanwhile, corporate Bitcoin adoption continues to accelerate, with five public companies announcing significant Bitcoin treasury initiatives in the past month [2]. This trend reflects a broader shift in how corporations are treating Bitcoin as a strategic asset, with implications for long-term market stability and liquidity.

As the market navigates this correction, the role of institutional investors remains pivotal. While ETF outflows suggest a short-term risk-off approach, the underlying structural adoption of Bitcoin—through corporate treasuries, retirement plans, and institutional infrastructure—continues to support long-term bullish fundamentals [4]. Analysts remain divided on the extent of the current cooldown, with some viewing it as a necessary consolidation phase ahead of further gains, while others warn of the possibility of deeper corrections if key support levels fail to hold [5]. With the market awaiting clarity on the Fed’s policy direction, Bitcoin’s next move could provide critical insight into its evolving relationship with traditional financial markets.

Source:

[1] BTC bull run over at $111K? 5 things to know in Bitcoin this week (https://cointelegraph.com/news/btc-bull-run-over-at-111k-5-things-bitcoin-this-week)

[2] 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)

[3] Crypto Funds Bleed: Bitcoin Outflows Surge 5x, Ether Outflows Double (https://cointelegraph.com/news/crypto-funds-bleed-bitcoin-outflows-surge-5x-ether-outflows-double)

[4] How Jackson Hole Uncertainty and Macro Headwinds Triggered August 2025’s Market Correction (https://blog.mexc.com/how-jackson-hole-uncertainty-and-macro-headwinds-triggered-august-2025s-market-correction)

[5] From Bullish to Cooldown: Bitcoin Remains in Profit-Taking Phase as Demand Fades (https://cryptopotato.com/from-bullish-to-cooldown-bitcoin-remains-in-profit-taking-phase-as-demand-fades-cryptoquant)