Bitcoin News Today: Institutional Demand and Macro Jitters Battle for Bitcoin's Fate

Bitcoin retreated below $116,000 on Monday following a record high reached last week, as investors took profits and macroeconomic concerns weighed on sentiment. The leading cryptocurrency was last seen down 1.1% at $116,394.87, having touched $124,496 on July 14, marking its fourth all-time high of the year [1]. Ether (ETH) also declined, dropping 2.5% to $4,354.00 after nearing its historic $4,900 peak [1]. The pullback came amid elevated forced liquidations, with over $530 million in long positions closed in the previous 24 hours, including $124 million in bitcoin and $184 million in ether positions [1].

The selloff was partly attributed to heightened macroeconomic anxiety, particularly after a hotter-than-expected July wholesale inflation reading reduced optimism around a potential Federal Reserve rate cut in September. This forced a broader reassessment of the market’s momentum, with some analysts suggesting the pullback is a strategic cooldown rather than a bearish shift. ETF inflows for bitcoin and ether remained strong for the week, with $547 million and $2.9 billion respectively, despite net outflows recorded on Friday [1].

Bitcoin’s overvaluation metrics have also raised concerns. The Market Value to Realized Value (MVRV) ratio currently stands at +21%, signaling a "mild danger zone" for profit-taking, according to Santiment [2]. The price has since fallen approximately 6% from its recent high. Short positions in the cryptocurrency are also building, with roughly $2.2 billion at risk of liquidation if bitcoin rebounds to its all-time high [2].

Despite the pullback, institutional demand and crypto ETF inflows continue to provide a floor for prices. Major crypto-related stocks saw mixed performance, with Coinbase and Galaxy Digital rising 1.0% and 2.2% respectively, while others like Bullish and Bitmine Immersion declined [1]. The broader market is now consolidating ahead of key macroeconomic events, particularly the Federal Reserve’s Jackson Hole symposium and the upcoming jobless claims data [1]. Traders are also monitoring whale activity, as large holders remain aggressive in accumulating bitcoin despite the recent price correction [2].

Meanwhile, alternative cryptocurrencies are gaining attention. Ethereum continues to anchor the altcoin sector with its network upgrades, while Solana and smaller but high-growth projects like MAGACOIN FINANCE are being highlighted as top buys in 2025. Analysts point to MAGACOIN FINANCE as a breakout DeFi project with strong community support and whale accumulation, suggesting it could offer significant upside potential [4]. The DeFi sector is also expanding rapidly, with total liquidity exceeding $200 million, driven by institutional interest and regulatory clarity [4].

The broader crypto market, as measured by the CoinDesk 20 index, fell 1.2% on the day [1], signaling caution ahead of key macroeconomic decisions. As investors await clarity on Fed policy, the path for bitcoin remains uncertain, with many analysts suggesting a consolidation phase in the $115,000–$120,000 range [3]. A breakdown below $112,000 could trigger further selling, while a rebound above $118,000 may test key resistance levels [3].

Source:

[1] Crypto Market Today (https://www.cnbc.com/2025/08/18/crypto-market-today.html)

[2] Bitcoin Price Danger Zone and Profit-Takers (https://cointelegraph.com/news/bitcoin-price-danger-zone-consolidation-profit-takers-analysts)

[3] Bitcoin, Ethereum Slip as Crypto Markets Pull Back (https://finance.yahoo.com/news/bitcoin-ethereum-slip-as-crypto-markets-pull-back-after-hitting-2025-highs-155818704.html)

[4] DeFi Liquidity Hits $200M — Top DeFi Token to Buy in 2025 (https://crypto-economy.com/defi-liquidity-hits-200m-magacoin-finance-named-top-defi-crypto-buy/)