Bitcoin News Today: Institutions Bet Big on Bitcoin as Market Waits for Clarity

Bitcoin is encountering a pivotal moment as it approaches the $112,000 support level, with market analysts divided over its ability to hold that key threshold. Institutional buying, which has been a significant driver of Bitcoin’s recent rally, appears to be showing signs of cooling. This shift in institutional activity raises questions about whether the current price action represents a healthy correction or the beginning of a more extended downturn. As of the latest data, Bitcoin traded at $121,730, up 2.34% in the past 24 hours, with a market capitalization of $2.34 trillion and a 29.75% increase in trading volume. However, the momentum from institutional demand seems to be waning, potentially leading to renewed selling pressure [1].

Recent market activity indicates a shift in institutional sentiment. According to the latest filings, Brevan Howard nearly doubled its exposure to BlackRock’s iShares Bitcoin Trust (IBIT) in Q2, holding 37.9 million shares worth $2.6 billion at the end of June. This move aligns with a broader trend of institutional investors increasing their Bitcoin allocations, including Jane Street, which disclosed a $1.46 billion stake in IBIT, and Cantor Fitzgerald, which boosted its exposure to over $250 million [2]. Despite this, other indicators suggest uncertainty. SoSoValue reported that institutional outflows continued for an additional day, with the market losing $121.81 million in one session alone. Prolonged outflows could further pressure the price of BTC [3].

Geopolitical developments are also influencing Bitcoin’s price trajectory. A U.S. president’s comments on facilitating trilateral negotiations between Russian and Ukrainian leaders introduced a layer of uncertainty, causing confusion among large treasury holders like Metaplanet and Strategy. While these institutions continue to accumulate Bitcoin, the broader market sentiment has become more cautious, contributing to a decline in the price below $116,000. This decline was accompanied by a 6.80% drop from its recent all-time high of $124,474 [3].

Short-term Bitcoin holders are particularly affected by the current price volatility. According to CryptoQuant data, the STH-SOPR ratio has fallen below 1, suggesting that short-term investors are realizing losses again. Historically, this metric has indicated either a cooling momentum or a wash-out of weak hands, both of which could lead to a more sustainable rally if losses are quickly absorbed. However, if the selling pressure persists, a further correction could last longer [3].

Looking ahead, Bitcoin traders are preparing for Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Economic Policy Symposium. The market is currently pricing in a 73% probability of a rate cut in September, down from 92% a week earlier. Traders are selling ahead of the speech, anticipating a potential hawkish tone from Powell, which could delay the anticipated easing of monetary policy. The Coinbase-Binance spread, a key indicator of U.S. spot selling, has moved into discount territory, reinforcing the bearish sentiment across time horizons [4].

Technical analysis also highlights Bitcoin’s struggle to break through key resistance levels. The price is currently below $115,000 and the 100-hour simple moving average, with immediate resistance at $113,500. A successful breach of the $115,000 level could push the price toward $118,200, a key psychological threshold. Conversely, a failure to hold above $112,000 could trigger a fresh decline, with support levels at $110,500 and $105,500 posing further challenges [7].

Institutional investors remain a critical factor in determining Bitcoin’s near-term direction. While long-term holders exhibit moderate selling behavior and are not experiencing significant pressure, the broader market is at a crossroads. The reactions of both short-term and long-term holders will play a decisive role in whether Bitcoin maintains its upward trajectory or experiences further corrections in the short run [3].

Source: [1] Could BTC Drop To $100K As Institutional Buying Dries Up? (https://coincentral.com/bitcoin-price-prediction-could-btc-drop-to-100k-as-institutional-buying-dries-up/) [2] Brevan Howard ramps up bitcoin exposure amid ... (https://www.hedgeweek.com/brevan-howard-ramps-up-bitcoin-exposure-amid-institutional-buying-spree/) [3] Will Institutional Investors Drive Recovery? (https://www.xt.com/en/blog/post/bitcoin-struggles-below-116000-will-institutional-investors-drive-recovery) [4] Bitcoin Traders Position for Jackson Hole. What Powell's ... (https://www.investopedia.com/bitcoin-traders-position-for-jackson-hole-what-powell-big-speech-could-mean-for-crypto-11795212) [5] Bitcoin dips ahead of Fed chair's remarks at Jackson Hole (https://fortune.com/crypto/2025/08/21/bitcoin-ethereum-fed-jerome-powell-jackson-hole-wyoming/) [6] Here's the secret Powell, Trump and Bessent aren't telling ... (https://www.marketwatch.com/story/heres-the-secret-powell-trump-and-bessent-arent-telling-us-about-gold-and-bitcoin-762e33f6) [7] Bitcoin Price Stays in Red, Can Bulls Regain Lost Ground ... (https://www.mitrade.com/insights/news/live-news/article-3-1060384-20250822)