Bitcoin News Today: Bulls Battle Bears at $117K as $13.8B Options Loom

Bitcoin’s recent price surge above $117,000 has triggered widespread liquidations of bearish positions, signaling a shift in market sentiment toward optimism about further gains. Coinglass data reveals that in the past 24 hours, $555 million in contracts were liquidated globally, with $308 million attributed to long positions and $246 million to short positions. Bitcoin specifically saw $103 million in liquidations, with bears disproportionately affected as prices moved higher [1]. This outcome aligns with broader expectations that the $117,000 level may serve as a catalyst for a new bullish phase in the cryptocurrency market.

However, the market remains in a critical holding pattern as $13.8 billion in Bitcoin options are set to expire on August 29. This event is widely viewed as a pivotal moment that could either signal the end of the current bull run or merely a temporary correction. Open interest for call options ($7.44 billion) is higher than for put options ($6.37 billion), but the actual price at expiration—particularly whether Bitcoin remains above $114,000—will determine which side benefits. The Deribit exchange, which controls 85% of the market, has a significant portion of its put options concentrated around the $112,000 level, suggesting that bears remain active and may attempt to drive the price lower before the expiry [2].

Amid this uncertainty, analysts at Bernstein have issued a bullish forecast, suggesting that Bitcoin could reach $200,000 within 6 to 12 months during a “long, exhausting bull run” that could extend through 2027. The firm argues that the current bull market is being fueled by regulatory developments and growing institutional adoption, including the recent executive order from Donald Trump that opens the door for cryptocurrencies in retirement plans [3]. These developments, combined with new federal frameworks for stablecoins, have bolstered investor confidence and positioned the market for continued growth.

Bitcoin’s price action has also been influenced by broader market dynamics, particularly the anticipation of remarks from Federal Reserve Chair Jerome Powell at the Jackson Hole symposium. Traders have been preparing for a potential hawkish stance from Powell, with the Coinbase-Binance price discrepancy and options pricing both indicating bearish positioning ahead of the speech. However, some analysts suggest that a short-term bottom could be forming, with Fundstrat’s Tom Lee noting that Bitcoin and Ethereum have both already bottomed in recent days—potentially setting the stage for a market rebound [4].

Meanwhile, Ethereum continues to outperform Bitcoin in terms of on-chain activity and institutional demand. On-chain data reveals that Ethereum is experiencing strong net outflows from exchanges, indicating that coins are being moved into long-term storage, staking, or institutional custody. This trend is supported by a recent influx of over $5.4 billion into Ethereum-focused ETFs, reinforcing the view that institutional investors are increasingly favoring the second-largest cryptocurrency [5]. Additionally, the SEC’s recent clarification on liquid staking tokens has further enhanced Ethereum’s appeal by reducing regulatory uncertainty for large investors.

Bitcoin’s recent correction from its peak of $123,500 to around $112,000 has raised concerns about its near-term trajectory, with some analysts suggesting a potential drop to $60,000. However, the broader market context, including regulatory tailwinds and growing institutional participation, continues to favor a long-term bullish outlook. As the market navigates the critical options expiry and key Federal Reserve signals, the balance between bearish pressure and institutional demand will determine whether Bitcoin can reclaim its previous highs or if Ethereum continues to capture the momentum.

Source:

[1] PANews (https://www.panewslab.com/en/articles/c4zmdd6o)

[2] Cointelegraph (https://cointelegraph.com/news/bitcoin-s-13-8b-options-expiry-puts-bulls-on-edge-ahead-of-key-test)

[3] Yahoo Finance (https://finance.yahoo.com/news/bitcoin-could-reach-200000-within-6-months-during-long-exhausting-crypto-bull-market-173358527.html)

[4] Investopedia (https://www.investopedia.com/bitcoin-traders-position-for-jackson-hole-what-powell-big-speech-could-mean-for-crypto-11795212)

[5] Mitrade Insights (https://www.mitrade.com/insights/news/live-news/article-3-1063266-20250823)