Bitcoin News Today: Institutional Hug vs. Market Jitters: Will Bitcoin’s 17% Fortress Hold?

Bitcoin is currently navigating a critical phase as it faces intense pressure near the $112,000 level. After breaking below $113,000 for the first time in over two weeks, the cryptocurrency triggered $113 million in leveraged long liquidations, signaling increased volatility and investor caution. The recent decline follows a brief all-time high of $124,176 earlier in the week, raising questions about the sustainability of the ongoing bull market amid a more uncertain macroeconomic climate [1].

Market sentiment has been influenced by several factors, including the U.S. Securities and Exchange Commission’s (SEC) investigation into Alt5 Sigma, a company associated with World Liberty Financial, which recently secured a $1.5 billion deal involving U.S. President Donald Trump. The investigation has sparked concerns about regulatory risks within the broader crypto sector. Additionally, a 1.5% decline in the Nasdaq 100, partly attributed to disappointing corporate AI deployment results, has further dampened investor optimism [1].

Geopolitical and economic pressures are also contributing to the market’s unease. The U.S. has imposed new 50% import tariffs on 407 aluminum- and steel-containing products, raising concerns about supply chain disruptions and inflationary pressures. These tariffs have intensified risk aversion, pushing investors toward safer assets such as gold. UBS recently raised its gold price forecast to $3,700 by September 2026, citing weak economic growth, Federal Reserve policy easing, and a weaker U.S. dollar as key drivers [1].

Bitcoin derivatives markets have also shown signs of deepening bearish sentiment. The 30-day options delta skew metric at Deribit reached 12%, its highest level in over four months. This indicator, which typically fluctuates between -6% and +6% under normal conditions, reflects an imbalance in call and put option pricing. A reading above 10% signals extreme fear and is rarely sustained. Historical data suggests that such spikes may precede significant rebounds, as seen in April when a delta skew of 13% was followed by a 40% rally [1].

Meanwhile, institutional interest in Bitcoin remains robust. Data from BitcoinTreasuries.NET shows that at least 297 public entities are now holding Bitcoin, up from 124 in early June. These include a mix of public and private firms, investment funds, and even government entities collectively holding 3.67 million BTC—over 17% of the total supply. This institutional adoption continues despite short-term market turbulence, suggesting a long-term bullish stance among major investors [2].

As the market awaits the U.S. Federal Reserve’s annual Jackson Hole symposium, where Chair Jerome Powell is expected to outline the central bank’s monetary policy path, uncertainty remains a dominant theme. The August CPI data, which showed inflation at 2.7%, has tempered expectations for a September rate cut, reducing the probability from 94% to 82%. Traders and analysts are closely watching whether Powell’s speech will signal a delayed easing cycle or a more aggressive pivot, as either outcome could significantly influence Bitcoin’s near-term trajectory [2].

Source: [1] Why is Bitcoin crashing and will $112K be the final bottom? (https://cointelegraph.com/news/why-is-bitcoin-crashing-and-will-112k-be-the-final-bottom) [2] Bitcoin Slips Toward $112K as Powell Prepares to Take ... (https://bravenewcoin.com/insights/bitcoin-slips-toward-112k-as-powell-prepares-to-take-the-stage)