Bitcoin News Today: Fed Signals Split, Bitcoin Plunges—Who Controls the Crypto Narrative?

Bitcoin (BTC) prices have experienced heightened volatility amid concerns over potential market manipulation and shifting expectations around Federal Reserve policy. As of late, BTC/USD has dipped below $113,000, marking a 17-day low following a sustained U.S. sell-off and signs of coordinated liquidity movements in key trading hubs. Analysts have noted unusual bid-liquidity dynamics, with some pointing to artificial influence on order books. Keith Alan, co-founder of Material Indicators, highlighted the possibility of strategic interventions to manipulate price action, including the emergence of liquidity clusters near $120,000 and resistance levels at $112,000. These observations are supported by data from CoinGlass, which shows concentrated liquidity zones and increasing downward pressure on bid levels as market participants monitor key reversal points.

The broader crypto market has not been immune to this turbulence. Altcoin liquidation data reveals that traders are bracing for further BTC declines, which could trigger cascading losses in secondary cryptocurrencies. TheKingfisher, a prominent market commentator, warned that a 5% drop in BTC could result in 10–30% declines in altcoins, citing the interconnectedness of leverage and momentum in the space. However, some analysts remain cautiously optimistic. Rekt Capital, a well-known crypto trading analyst, drew parallels between the current pullback and previous bullish cycles in 2017 and 2021, noting that such retracements historically preceded all-time highs. This perspective has been reinforced by inflows into ETFs tracking BTC and ETH, which recorded $547 million and $2.9 billion, respectively, for the week ending August 17, despite short-term outflows.

The Federal Reserve’s monetary policy and its upcoming decisions have emerged as critical factors influencing market sentiment. Minutes from the FOMC’s July 2025 meeting revealed internal divisions among policymakers over the appropriateness of maintaining the current rate range. While a majority supported the decision to hold rates steady at 4.25–4.50%, dissenting voices—led by Governors Christopher Waller and Michelle Bowman—advocated for a 25-basis-point rate cut. The minutes highlighted concerns over inflation risks stemming from Trump-era tariffs and the potential for unanchored inflation expectations. Participants also noted growing downside risks to employment, particularly as economic growth has remained tepid and consumer spending has weakened. Despite these tensions, the central bank emphasized its commitment to achieving maximum employment and bringing inflation back to 2% over the longer term.

With the upcoming Jackson Hole symposium scheduled for late August, investors are closely watching Federal Reserve Chair Jerome Powell for clarity on the path of monetary policy. Market expectations currently price in an 80–95% probability of a 25-basis-point cut at the September 17 FOMC meeting. However, incoming economic data—particularly on wage growth, labor market strength, and inflation—could shift this outlook. Powell’s speech at Jackson Hole will serve as a key communication tool, with markets likely to react swiftly to any signals of rate-cutting intentions. Analysts have noted that the Fed’s language on tariffs, inflation persistence, and labor market dynamics will be pivotal in shaping the next phase of the crypto and broader financial markets.

In addition to macroeconomic factors, structural developments in the crypto industry have continued to support bullish sentiment. The recent passage of the GENIUS Act, which created the first federal framework for dollar-backed stablecoins, and the implementation of Project Crypto by the SEC suggest a regulatory environment increasingly open to innovation. These developments have been accompanied by growing institutional adoption, including corporate accumulation of BTC and ETH, which has added depth and liquidity to the market. While short-term volatility remains a challenge, the confluence of regulatory clarity, macroeconomic shifts, and corporate treasury strategies positions the crypto market for further evolution in the coming months.

Source: [1] Bitcoin analysts point to 'manipulation' as BTC price falls to 17-day low (https://cointelegraph.com/news/bitcoin-analysts-point-to-manipulation-as-btc-price-falls-to-17-day-low) [2] Bitcoin could reach $200,000 within 6 months during 'long exhausting bull run' (https://finance.yahoo.com/news/bitcoin-could-reach-200000-within-6-months-during-long-exhausting-crypto-bull-market-173358527.html) [3] Crypto market tumbles to begin the week as macro concerns trigger $500M in forced selling (https://www.cnbc.com/2025/08/18/crypto-market-today.html) [4] Fed minutes August 2025 (https://www.cnbc.com/2025/08/20/fed-minutes-august-2025.html) [5] Minutes of the Federal Open Market Committee July 29–30, 2025 (https://www.federalreserve.gov/monetarypolicy/fomcminutes20250730.htm)