Bitcoin News Today: Institutional Resilience or Red Flags? Bitcoin Nears $115K After Record Surge

Bitcoin surged to $124,496 earlier in the week, marking its fourth record high of 2025 before retracting under pressure from macroeconomic concerns and profit-taking, according to CNBC and Cointelegraph. The price dropped to as low as $114,706 in the following days, with over $530 million in liquidations across the crypto market within 24 hours. Bitcoin long positions accounted for $124 million of that total, while Ethereum longs faced $184 million in forced sales. The pullback came amid higher-than-expected July wholesale inflation data, which cast doubt on the possibility of a September rate cut by the Federal Reserve [1].

The U.S. Department of the Treasury's clarification regarding its strategic bitcoin reserve under the Trump administration added to investor disappointment. The reserve, which is limited to forfeited bitcoin, aims to explore "budget-neutral pathways to acquire more bitcoin," according to the CNBC report. This revelation coincided with broader market uncertainty and triggered further selling pressure [1].

The broader crypto market reflected the downturn, with the CoinDesk 20 index declining by 1.2%. Related stocks, including Bitmine Immersion and Bullish, also faced declines, while Coinbase and Galaxy Digital showed slight gains. The week's performance underscored the influence of macroeconomic factors on crypto markets and highlighted the importance of central bank policy in shaping investor sentiment [1].

Bitcoin’s recent retracement sparked debates over whether the bull market had reached a peak. However, on-chain data and ETF flows suggest the cycle is far from over. Bitcoin’s price remains above key support zones, and the 7.8% pullback is considered a normal fluctuation in historical terms. Long-term holders are increasing their bitcoin supply, indicating a reluctance to sell at current levels [3].

The ETF inflows for Bitcoin and Ethereum also remained positive, despite a net outflow of $121 million reported on Monday. The largest ETF, BlackRock’s iShares Bitcoin Trust, experienced its first outflows since August 5, signaling a temporary slowdown in fresh capital inflows [2]. Nevertheless, ETFs tracking Bitcoin and Ethereum posted significant weekly inflows, with Ethereum funds setting a record for 14 consecutive weeks [1].

Derivatives market signals also suggested that the bull market was not over. Negative funding rates in recent sessions indicated that most traders were betting against the price, a pattern that historically precedes rebounds. Additionally, open interest data showed increased buying activity near key liquidation zones, with bulls stepping in to absorb the selling pressure [4].

Despite the volatility, some analysts view the pullback as a necessary cooldown rather than a sign of a bearish reversal. Institutional demand, particularly from digital asset treasuries, has remained strong, helping to stabilize prices. However, liquidity in the market remains fragile, with weekend imbalances contributing to the sharp sell-off [4]. The market's resilience will likely depend on renewed institutional demand and the timing of the Federal Reserve's policy decisions [3].

As Bitcoin and Ethereum face continued volatility, traders and investors are closely monitoring key levels and indicators. The $110,000 level for Bitcoin and the $4,200 level for Ethereum are seen as critical support zones. A sustained break below these levels could trigger further liquidations and deepen the correction. However, current data suggests that the underlying fundamentals of the market remain intact [1].

Source:

[1] Bitcoin sinks to $115000 after hitting its newest record, as ... (https://www.cnbc.com/2025/08/18/crypto-market-today.html)

[2] Bitcoin sell pressure 'palpable' as BTC bid support stacks ... (https://cointelegraph.com/news/bitcoin-sell-pressure-palpable-btc-bid-support-stacks-at-105k)

[3] Has The Bitcoin Price Bull Market Topped? (https://bitcoinmagazine.com/markets/has-the-bitcoin-price-bull-market-topped)

[4] Bitcoin 'liquidity zones swept' but uptick in open interest ... (https://cointelegraph.com/news/bitcoin-liquidity-zones-swept-but-uptick-in-open-interest-hints-at-btc-recovery)