Bitcoin News Today: Investors Brace for Fed Clarity as Crypto Market Holds Breath at Key Support Levels

Bitcoin dropped below $114,000 on Monday, with Ether also falling below $4,350 as traders reacted to macroeconomic concerns and a potential hawkish tone from the U.S. Federal Reserve at its upcoming Jackson Hole symposium. The price of Bitcoin declined 1.1% to $116,394.87 after hitting a record high of $124,496 last week, marking its fourth peak of the year. Ether fell 2.5% to $4,354.00, having nearly reached its all-time high of $4,800 in recent days. The selloff followed a report of higher-than-expected July wholesale inflation data, which raised doubts about the likelihood of a Fed rate cut in September [1].

Market turbulence led to over $530 million in forced liquidations of long positions in Bitcoin and Ether across trading platforms in the previous 24 hours. According to Coin Glass, this included $124 million in Bitcoin liquidations and $184 million in Ether liquidations. These forced sales occurred as traders were compelled to sell assets at market price to meet margin requirements, further depressing prices. The broader crypto market, as measured by the CoinDesk 20 index, declined 1.2% [1].

Amid the downturn, investors are closely watching the Federal Reserve’s annual Jackson Hole symposium for policy clues. The event is expected to influence sentiment ahead of the Fed’s remaining policy meetings this year. Additionally, traders are monitoring upcoming jobless claims data to assess the health of the labor market. The volatility surprised some analysts, as the market had previously shown resilience due to growing institutional adoption and support from Bitcoin and Ether ETFs [1].

Despite the recent pullback, data suggests the correction may be nearing a bottom. Bitcoin’s 30-day options skew reached its highest level in four months, signaling a temporary spike in fear rather than sustained bearish sentiment. Historical data shows that similar skews have preceded strong rallies. For example, a similar skew jump on August 5 was followed by a $9,657 rebound within six days [2]. Spot Bitcoin ETF flows also indicate stability, with $547 million in net inflows for the week despite a brief outflow period. These flows, combined with strong top trader positioning on platforms like OKX and Binance, suggest professional investors remain cautiously optimistic [2].

Stablecoin demand in China also offers insight into retail sentiment. Tether (USDT) is currently trading at a 0.8% discount against the U.S. dollar in China, reflecting mild pressure to exit crypto markets. However, this level has remained stable since Friday, indicating no worsening of sentiment. Taken together, these four metrics—options skew, ETF flows, top trader positioning, and stablecoin demand—suggest the current pullback is limited and that Bitcoin may soon reclaim the $120,000 level [2].

Bitcoin is currently trading slightly below its 30-day average price, while Ether remains 15% above its level from a week ago. The market remains in a state of consolidation, with investors waiting for more clarity from central banks and macroeconomic data before committing to larger positions. Analysts continue to emphasize the importance of ETF inflows and institutional accumulation of Bitcoin and Ether as key long-term supports for the asset class [1].

Source: [1] crypto-market-today.html (https://www.cnbc.com/2025/08/18/crypto-market-today.html) [2] Was-the-bitcoin-price-bottom-dollar114-7k-data-suggests-it-s-time-for-a-reversal (https://cointelegraph.com/news/was-the-bitcoin-price-bottom-dollar114-7k-data-suggests-it-s-time-for-a-reversal)