Bitcoin News Today: Institutional Hugs Can’t Stop Bitcoin’s Short-Term Wobble

Bitcoin fell below $111,000 on Wednesday, marking a 1.54% decline over the previous 24 hours. The price retreat came despite recent institutional adoption and macroeconomic tailwinds that had pushed the asset to record highs earlier in August. At the time of writing, Bitcoin was trading above $113,000 after briefly finding support around its 100-day exponential moving average (EMA) [2]. The market has shown mixed signals, with spot demand remaining neutral and perpetual futures sentiment leaning bearish, according to on-chain analytics firm Glassnode [2].

The pullback follows a 12% correction from Bitcoin's mid-August peak of $124,474. Analysts have attributed the recent volatility to a combination of factors, including speculative trading in perpetual futures contracts and broader market caution ahead of key macroeconomic events. Despite the dip, institutional flows have remained steady, with Bitcoin spot ETFs recording a net inflow of $81.25 million on Wednesday, extending a three-day inflow streak [2]. The continued inflows suggest that long-term bullish sentiment remains intact, even as short-term traders take profits.

Bitcoin’s recent performance has been closely watched ahead of the Bitcoin Asia conference in Hong Kong, which commenced on Thursday as one of the largest global gatherings focused on the cryptocurrency. The event has drawn significant attention, with over 15,000 attendees expected, and highlights the growing institutional interest and regulatory acceptance in the Asia-Pacific region. Hong Kong has emerged as a key jurisdiction for crypto innovation, with its recent Policy Statement 2.0 and Stablecoins Ordinance signaling a more favorable regulatory environment [2].

Analysts have highlighted the role of corporate treasuries in shaping Bitcoin’s price action. Public and private companies have been increasingly adding Bitcoin to their balance sheets, reducing circulating supply and reinforcing demand. At the time of writing, corporate holdings accounted for over 7% of total Bitcoin supply, with this trend expected to continue as more firms adopt the asset as a strategic reserve. The shrinking float has been a key driver of price appreciation, as it reduces the available supply for trading and increases the likelihood of higher prices in the long term [1].

Institutional adoption has also been fueled by regulatory developments in the United States. The passage of the GENIUS Act in July provided a federal framework for stablecoins, while an executive order in August allowed Bitcoin to be included in 401(k) retirement plans. These changes have been viewed as catalysts for broader adoption, with the potential to unlock trillions in new capital flows into the asset class [1]. The U.S. Securities and Exchange Commission's (SEC) Project Crypto further aims to modernize securities rules, potentially accelerating the integration of Bitcoin into traditional financial systems.

Bitcoin’s price action has also been influenced by broader macroeconomic conditions, including the Federal Reserve’s dovish monetary policy and global liquidity expansion. The ongoing easing cycle has reduced the cost of capital, making Bitcoin an attractive alternative to traditional assets such as gold and equities. Additionally, the post-halving supply shock, which occurred in April 2024, has reinforced the scarcity narrative and supported long-term price appreciation [1].

Looking ahead, analysts remain divided on Bitcoin’s near-term trajectory. Some see the current correction as a consolidation phase before a potential rally toward $120,000, while others warn of a possible breakdown toward key support levels near $103,922, the 200-day EMA. The Relative Strength Index (RSI) on the daily chart currently reads 46, indicating a fading bearish momentum. For the recovery to be sustained, the RSI would need to move above its neutral level of 50 [2].

Source:

[1] Bitcoin Price Predictions 2025: Analysts Forecast $145K to ... (https://www.coingecko.com/learn/bitcoin-price-predictions-expert-forecasts)

[2] BTC recovers as Bitcoin Asia kicks off in Hong Kong (https://www.mitrade.com/insights/news/live-news/article-3-1076193-20250828)