Bitcoin News Today: Institutional Confidence Rises Amid Crypto’s Descent

The cryptocurrency market is currently experiencing a notable correction, with Bitcoin (BTC) and major altcoins sliding below key price levels amid rising liquidations and macroeconomic concerns. As of August 29, 2025, Bitcoin was trading at approximately $108,292, down 3.2% from the previous 24-hour period, having fallen below the $110,000 threshold for the first time since early August. This decline triggered a wave of liquidations, doubling in volume to $529 million within a single day, while open interest remained above $200 billion [1]. Analysts warn that further losses could push the market into bear territory, with Rekt Capital noting that BTC must regain the $114,000 level to avert an extended correction [1].

Ethereum (ETH) also saw a decline, trading at $4,345.17, down 2.3% in 24 hours. Solana (SOL), XRP, and SUI followed suit, with declines of 3.5%, 4.4%, and 4.8%, respectively. Altcoins remain under pressure, with nearly 95 of the top 100 cryptocurrencies experiencing losses in the past 24 hours [3]. The broader market correction has been attributed to a combination of internal and external factors, including rising liquidations, elevated U.S. inflation data, and Bitcoin’s break of a critical support level [3]. The U.S. Federal Reserve’s preferred inflation gauge has shown persistent price pressures, with core inflation rising by 0.3% in July 2025, dampening expectations for near-term rate cuts [3].

Amid the downturn, several analysts have highlighted the correction as a potential buying opportunity. Michaël van de Poppe, a prominent crypto analyst, described the current market pullback as a prime entry point for long-term investors, suggesting that accumulation during weakness could position traders for an anticipated upswing in both Bitcoin and altcoins [2]. He emphasized that contrarian sentiment, where bearish calls coincide with market lows, historically signals a turning point [2]. While van de Poppe did not provide specific price targets, he advocated for a sentiment-driven accumulation strategy, urging investors to act decisively rather than waiting for confirmation [2].

Institutional data also suggests underlying strength in the market. Bitcoin ETF inflows have remained steady despite short-term price volatility, indicating sustained interest from large investors [2]. On-chain metrics, including active addresses and whale transactions, have shown resilience, further supporting the view that the correction could be a temporary setback rather than a long-term bearish trend. Meanwhile, Ethereum’s Ethereum Value Locked (TVL) has remained stable, and the launch of the Aave protocol’s Horizon RWA Market contributed to a surge in total value locked, surpassing $40 billion [1].

For investors considering altcoins during the correction, certain tokens may offer asymmetric upside potential. Solana, a high-performance blockchain, continues to attract attention due to its growing ecosystem and infrastructure for decentralized exchanges. Ethereum-based tokens, such as those involved in decentralized finance (DeFi), have historically outperformed during recovery phases. Investors should also consider liquidity metrics, favoring high-volume pairs on major exchanges to minimize slippage during volatile periods [2]. Additionally, market sentiment indicators, such as the Fear and Greed Index, have reached extreme fear levels, reinforcing the contrarian case for accumulation [2].

The correction has also highlighted the broader macroeconomic factors influencing crypto markets. The U.S. Department of Commerce’s recent announcement to publish economic data onchain marks a significant development, signaling growing institutional acceptance of blockchain technology [1]. By leveraging data from the Bureau of Economic Analysis and GDP metrics, the initiative aims to enhance transparency and trust in financial systems. Meanwhile, the rise in stablecoin circulation, which exceeded $282.8 billion, has further expanded the utility of crypto assets in cross-border payments and settlement systems [1]. These developments suggest that while the current correction presents short-term challenges, the long-term narrative for crypto remains intact.

Source:

[1] Crypto Market Update: Stablecoins Top US$283 Billion in ... (https://www.nasdaq.com/articles/crypto-market-update-stablecoins-top-us-283-billion-circulation-bitcoin-decline-continues)

[2] Michaël van de Poppe Says 2025 Crypto Correction Is a Prime Buy-the-Dip Opportunity for Bitcoin (BTC) and Altcoins (https://blockchain.news/flashnews/micha-l-van-de-poppe-says-2025-crypto-correction-is-a-prime-buy-the-dip-opportunity-for-bitcoin-btc-and-altcoins)

[3] Key Reasons Behind the Market Correction! (https://www.digivestasi.com/news/detail/aset_kripto/crypto-prices-plunge-today-key-reasons-behind-the-market-correction?lang=eng)