Bitcoin News Today: Institutional Hesitation Casts Shadow Over Crypto Rally

Leading cryptocurrencies experienced daily losses on August 18 as the market faced profit-taking and macroeconomic pressures. Bitcoin dropped 1.1% to $116,394.87, having reached an all-time high of $124,496 earlier in the week. Ether also declined 2.5% to $4,354.00 after nearing its previous record high of $4,800. The pullback followed a surge in the previous week driven by expectations of Federal Reserve rate cuts and increased institutional adoption. However, higher-than-expected July wholesale inflation data dampened investor sentiment, casting doubt on the likelihood of a September rate cut and increasing the risk of prolonged volatility. In the past 24 hours, liquidations from long positions totaled over $530 million, with $124 million attributed to Bitcoin and $184 million to Ether, according to CoinGlass data [1].

Bitcoin’s recent performance has placed it in a "mild danger zone" according to the Market Value to Realized Value (MVRV) ratio, a metric used to assess overvaluation. The ratio currently stands at +21%, suggesting that the average investor is in profit territory but at a level that increases the likelihood of profit-taking. Bitcoin, trading at $115,800, was approximately 6% below its all-time high [2]. Bitfinex analysts noted that the rally had "fizzled out" due to a lack of macroeconomic catalysts, and the market is now in a consolidation phase as investors await further developments, particularly the Fed’s policy decisions. Approximately $2.2 billion in short positions is at risk of liquidation if Bitcoin rebounds to its previous record high [2].

Altcoins, however, showed mixed results. Cardano (ADA) and XRP witnessed significant whale activity, with large investors accumulating assets despite broader market declines. XRP wallets holding between 1 million and 10 million tokens added 300 million tokens to their holdings in August, while ADA holders accumulated 30 million tokens. On-chain data from Santiment revealed that whale activity for both cryptocurrencies hit a five-month high. XRP’s year-to-date return stands at around 15%, attributed to the favorable outcome of the SEC vs. Ripple lawsuit and regulatory developments [4]. Cardano, despite a year-to-date decline of 24%, has seen a rise in institutional interest, partly driven by Grayscale’s filing for a Cardano Trust ETF, which has boosted its relative performance against Bitcoin to a four-month high [4].

Bitcoin ETFs and Ethereum ETFs continue to play a pivotal role in market dynamics. While Bitcoin ETFs posted net outflows of $547 million in the last 24 hours, the week saw $547 million and $2.9 billion in net inflows for Bitcoin and Ethereum ETFs, respectively. Ethereum ETFs experienced a record week of inflows, marking their 14th consecutive week of positive inflows. This trend highlights the growing institutional interest in cryptocurrencies, even amid market corrections [1]. Ethereum, currently up 15% for the month, has benefited from continued fund inflows and corporate adoption, though its dominance remains lower than Bitcoin’s. Analysts suggest that altcoins are likely to see increased activity as investors rotate capital into alternative assets, particularly in the absence of strong macroeconomic triggers [1].

The broader market environment remains cautious, with investors closely monitoring the Federal Reserve’s upcoming policy decisions. The CME FedWatch Tool indicates that 83.6% of market participants expect a rate cut on September 17, a key event that could influence Bitcoin’s direction. However, if the Fed adopts a "wait-and-see" approach, analysts predict Bitcoin may consolidate within the $115,000–$120,000 range. A breakdown below $112,000 could trigger further selling pressure, while a rebound above $118,000 may test resistance levels [3]. In the short term, the market is likely to remain range-bound until strong catalysts emerge, such as a dovish shift from the Fed or renewed ETF inflows. Institutional investors and long-term holders, particularly those with large Bitcoin and Ethereum holdings, appear to remain confident in future price appreciation despite the current correction [2].

Source:

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

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

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

[4] Cardano and XRP Whale Activity (https://finance.yahoo.com/news/cardano-xrp-whale-activity-hits-160753452.html)