Bitcoin News Today: Institutional Moves and Fed Jitters Spark Bitcoin's $115K Crossroad

Bitcoin fell below $115,000 on Friday amid heightened uncertainty around U.S. Federal Reserve policy, as investors grappled with the implications of potential interest rate decisions and evolving market dynamics. The cryptocurrency had previously surged to an intraday high of $117,300 following comments from Fed Chair Jerome Powell at the Jackson Hole Economic Symposium, which hinted at a potential rate cut as early as September. However, subsequent price action reflected ongoing caution, with traders reacting to shifting macroeconomic signals and the broader uncertainty around central bank interventions [3].

The price volatility coincided with significant short liquidation events, as $379.88 million in short positions were wiped out, with Bitcoin accounting for $56.4 million of that total. The upward movement triggered a wave of stop-loss orders, particularly above the $117,000 threshold, which had been a key area of liquidity resistance. The Bitcoin liquidation heatmap showed a sharp reduction in short exposure, with traders seemingly shifting their focus to longer-term accumulation strategies. Ether also experienced a notable rally, rising nearly 15% to $4,760, as broader crypto sentiment improved [3].

Analysts have remained divided on the future trajectory of Bitcoin’s price, with some maintaining bullish expectations despite the recent pullback. Michael van de Poppe, founder of MN Capital, described the recent price action as a sign that the “uptrend is back,” noting that Bitcoin’s pull below the $112,000 level had provided a favorable entry point for long-term investors. The market appears to be consolidating after a period of aggressive buying, particularly in the wake of the approval of spot Bitcoin ETFs in early 2024, which have brought institutional capital into the market for the first time [3].

Meanwhile, the broader macroeconomic environment remains a key factor in shaping investor sentiment. The Fed’s upcoming policy decisions will play a crucial role in determining whether Bitcoin continues to attract institutional interest or faces renewed downward pressure. The broader market is currently in a state of anticipation ahead of Powell’s final remarks at Jackson Hole, with traders closely monitoring any indication of a shift in the Fed’s rate trajectory. Some analysts have noted that core inflation, which rose to 3.1%, could delay a rate cut, adding to the uncertainty surrounding the central bank’s next move [4].

Bitcoin’s price movement is also being influenced by structural developments within the crypto ecosystem, including the continued expansion of bitcoin treasury strategies and the emergence of new market participants. Michael Saylor’s Strategy, one of the largest corporate holders of Bitcoin, recently updated its capital-raising rules, allowing for more flexibility in issuing equity at lower premiums. This move has sparked concerns among some investors, with critics warning that it could create a “spiral of doom” for the company and, by extension, Bitcoin prices. Others, however, see the shift as a necessary adaptation in a rapidly evolving market landscape [4].

As the market continues to navigate this complex environment, the role of institutional investors and regulatory developments in Asia—particularly in Japan and Hong Kong—remain influential factors. Japan’s Financial Services Agency is preparing to approve the first yen-denominated stablecoin as early as this fall, while Hong Kong’s Stablecoins Ordinance is reshaping the regulatory landscape for digital assets. These developments are likely to attract further investment in the region and could contribute to Bitcoin’s long-term price stability by diversifying its global investor base [1].

Source: [1] Eric Trump Makes Bitcoin Price Predictions as He Reportedly Gets Ready to Visit Metaplanet (https://www.coindesk.com/business/2025/08/23/eric-trump-makes-bitcoin-price-predictions-as-he-reportedly-gets-ready-to-visit-metaplanet) [2] Jack Dorsey Says There's Only One Way To Choose Between ... (https://finance.yahoo.com/news/jack-dorsey-says-theres-only-123727966.html) [3] Bitcoin Price Breakout to $117K Liquidates Bears, Opening Door to Fresh All-Time Highs (https://cointelegraph.com/news/bitcoin-price-breakout-to-dollar117k-liquidates-bears-opening-door-to-fresh-all-time-highs) [4] Serious 'Spiral of Doom' Strategy Warning Fuels Sudden Bitcoin Price Crash Fears (https://www.forbes.com/sites/digital-assets/2025/08/22/serious-spiral-of-doom-strategy-warning-fuels-sudden-bitcoin-price-crash-fears/)