Bitcoin News Today: Investor caution drives Bitcoin toward $100K as U.S. and China economic cracks widen

Bitcoin approached the $100,000 threshold amid rising concerns over the U.S. trade deficit and financial instability in China’s banking sector, which have sparked investor caution and triggered significant market turbulence. The world’s largest cryptocurrency fell to a 50-day low below $108,000, with $137 million in liquidations of leveraged bullish positions reported. This sell-off coincided with a 1.2% pullback in the tech-heavy Nasdaq 100 index, reflecting growing skepticism about the sustainability of the artificial intelligence sector’s growth [1].

The U.S. trade deficit widened by 22% in July to $103.6 billion, surpassing economist expectations and signaling potential drag on third-quarter economic growth, according to Reuters. This macroeconomic weakness contributed to Bitcoin’s decline, as traders reduced exposure ahead of the U.S. national holiday. Additionally, major insider stock sales and rising delinquencies in China’s largest banks raised further alarms. The five biggest Chinese retail banks reported record-low profit margins and sold $5.2 billion in bad debt in the first quarter, an eightfold increase compared to the previous year [1].

Bitcoin’s price correction was exacerbated by the actions of large holders. Whale sales and steady outflows from miners added to the downward momentum, though analysts emphasized that the primary cause remained macroeconomic uncertainty. Institutional demand for Bitcoin, however, showed resilience. Bitcoin spot ETFs recorded a net inflow of $567.35 million during the week, a reversal from the previous week’s outflow. This indicates that institutional and corporate buyers continued to add to their Bitcoin holdings amid recent price dips [3].

The AI sector also contributed to market jitters. Despite reporting record profits of $46 billion in the second quarter, Nvidia saw its stock fall by 1.3% on Thursday. The company disclosed that 44% of its data center revenue came from just two clients, raising concerns about over-reliance on a few major customers. Super Micro Computer, a key supplier of AI infrastructure to Nvidia, warned of financial reporting weaknesses, causing its stock to decline 5.1% [4].

Bitcoin’s on-chain activity pointed to cautious market sentiment. According to a report by Glassnode, spot demand remained neutral, while perpetual futures leaned bearish but fragile. The 30-day moving average of Cumulative Volume Delta (CVD) on major exchanges like Coinbase and Binance had converged toward zero, signaling a neutralization of buying pressure. Meanwhile, the futures market showed increasing sell bias, with CVD declining into negative territory since July [3].

The macroeconomic environment continued to influence investor behavior. U.S. Treasury yields dropped as investors sought safer assets. The 2-year Treasury yield fell to 3.62%, a four-month low, indicating a growing preference for risk-free assets despite ongoing inflation concerns. In September, the Federal Reserve’s policy decisions will be closely watched, as any interest rate cuts could impact risk-on assets like Bitcoin [3].

Looking ahead, Bitcoin’s path remains uncertain. Historical data shows that the cryptocurrency has typically posted negative returns in September, with an average gain of only 3.77%. However, if the Fed cuts rates in the coming months and institutional demand for Bitcoin increases, there is potential for a recovery. For now, the market is bracing for further volatility as macroeconomic and geopolitical risks remain elevated [3].

Source:

[1] Bitcoin Drop Driven By US Trade Deficit, China Banks (https://cointelegraph.com/news/bitcoin-risks-dollar100k-crash-as-us-china-economic-woes-take-hold)

[2] BTCUSD - Bitcoin heads toward $100K as US trade deficit ... (https://mx.advfn.com/bolsa-de-valores/COIN/BTCUSD/crypto-news/96731963/bitcoin-heads-toward-100k-as-us-trade-deficit-ch)

[3] Bitcoin Weekly Forecast: BTC steadies after a massive sell-off (https://www.mitrade.com/insights/news/live-news/article-3-1080271-20250829)

[4] Bitcoin, Solana Rise as Investors Weigh Nvidia Earnings ... (https://decrypt.co/337216/bitcoin-solana-rise-investors-weigh-nvidia-gdp-data)