Bitcoin News Today: Institutional Sell-Offs Test Bitcoin's Long-Term Conviction

BlackRock and Cathie Wood’s Ark Invest have recently liquidated portions of their Bitcoin holdings amid a broader market correction. BlackRock sold 490 BTC, amounting to $68.7 million, while also divesting $87.2 million in Ethereum. Ark Invest, through its Ark 21Shares Bitcoin ETF, sold 559 BTC, valued at $64.4 million. Despite these sales, both entities still maintain substantial Bitcoin holdings, underscoring their long-term conviction in the asset. BlackRock’s spot Bitcoin ETF (IBIT) has now surpassed $91 billion in assets under management, reflecting strong institutional demand for regulated Bitcoin exposure [1].

The selloff coincides with broader red ETF outflows in August, raising questions about whether the moves signal routine profit-taking or the onset of bearish momentum. Cathie Wood, despite recent sales, has reiterated her bullish stance on Bitcoin, predicting the price could reach $1.5 million within the coming years. Her optimism is rooted in the asset’s increasing adoption by corporations and institutional investors, which she believes will reduce volatility and position Bitcoin as a long-term investment vehicle [1].

However, veteran trader Dr. Profit has warned of a short-term correction, stating he is “more than confident” Bitcoin will dip below $100,000 in September before rebounding to new highs. Another analyst, Bull Theory, projects a price drop to a support zone of approximately $98,000, followed by a potential surge to $160,000–$200,000 over the next six months, contingent on bulls defending key levels. Meanwhile, some institutional players continue to accumulate Bitcoin during the downturn. Strategy expanded its holdings by 430 BTC ($51.4 million), and Japan’s Metaplanet added 775 BTC to its total stash of 18,888 BTC [1].

Bitcoin’s price has faced downward pressure due to a combination of profit-taking, leverage unwinding, and uncertainty around Federal Reserve policy. Over $1 billion in liquidations hit the market in recent days, with 95% of losses stemming from bullish positions. Bitcoin’s Market Value to Realized Value (MVRV) ratio currently stands at 21%, suggesting that most holders are in profit, thus creating natural selling pressure. Additionally, the Federal Reserve’s shifting stance on rate cuts has introduced volatility, with Polymarket odds of a September cut rising to 26%. Market watchers are closely watching Jerome Powell’s speech at Jackson Hole for clarity on the central bank’s next moves [3].

Technical indicators suggest Bitcoin remains in a broadly bullish trend despite recent weakness. The 50 EMA has so far protected Bitcoin from a deeper decline, while a support zone around $112,000 remains intact. If bulls can defend this level, the price could rebound toward $120,000 and $124,000. However, a break below $100,000 could shift the outlook toward bearish territory. Analysts note that the broader cryptocurrency market is also showing mixed signals, with Bitcoin’s dominance dropping to 59% from over 65% earlier this year. This indicates capital rotation into altcoins, a sign of healthy risk appetite. Yet, Bitcoin’s declining dominance during uncertain periods can also reflect a lack of directional bias [3].

Bitcoin’s path forward is likely to depend on three key factors: the clarity provided by the Federal Reserve at Jackson Hole, the extent of leverage unwinding, and continued institutional demand. While short-term volatility remains a challenge, long-term bullish indicators—including whale accumulation and strong ETF inflows—suggest a potential for further gains. The current correction, while painful, appears to be a normal part of the bull cycle rather than a fundamental shift in Bitcoin’s trajectory. As the market tests its resilience, institutional investors and market makers are playing a crucial role in stabilizing the ecosystem, highlighting the growing legitimacy of Bitcoin as a financial asset [1].

Source:

[1] Cathie Wood's Ark And BlackRock Dump Bitcoin as ... (https://coingape.com/cathie-woods-ark-and-blackrock-dump-bitcoin-as-veteran-trader-predicts-btc-price-crash/)

[2] Cathie Wood Is Buying BLSH Stock After the Bullish IPO ... (https://finance.yahoo.com/news/cathie-wood-buying-blsh-stock-142434602.html)

[3] Bitcoin Price Is Going Down as Market Stress Tests Bulls ... (https://www.financemagnates.com/trending/bitcoin-price-is-going-down-as-market-stress-tests-bulls-before-jackson-hole/)