Bitcoin News Today: Investors Brace as FOMC Minutes Loom Over Shaken Crypto Market

Bitcoin and ether retreated from recent highs as investors braced for the release of the U.S. Federal Reserve’s July FOMC meeting minutes, with risk-off sentiment gaining traction ahead of the critical policy update. The cryptocurrency market saw over $500 million in forced liquidations of leveraged long positions, including $124 million in bitcoin and $184 million in ether, as macroeconomic concerns overshadowed recent institutional and corporate adoption momentum. Bitcoin briefly touched $124,496 last week before falling to as low as $114,706, while ether declined 2.5% to $4,354 after nearing its $4,800 record. The correction followed a 50-basis-point inflation print in July, stoking doubts about a September rate cut and triggering profit-taking among traders [3].

The volatility was exacerbated by geopolitical and macroeconomic headwinds, including a 50% U.S. import tariff on aluminum- and steel-containing products, which raised concerns about supply chain disruptions and inflationary pressures. The tariffs impacted goods such as car parts and specialty chemicals, with economists warning of potential fallout in global markets [1]. Meanwhile, regulatory uncertainty also weighed on sentiment, particularly in the wake of reports that the U.S. Securities and Exchange Commission is investigating Alt5 Sigma—a company recently linked to World Liberty Financial, which counts Donald Trump as a co-founder. This development, combined with broader regulatory scrutiny, deepened investor caution in the crypto market [1].

Japan’s 10-year government bond yield hit its highest level since 2008, reaching above 1.61%, signaling growing fiscal concerns that could spill over into global risk assets. The increase in yields, which extended to 20- and 30-year bonds, highlighted the potential for volatility in fixed-income markets and could exacerbate tightening in global financial conditions. A veteran Japanese lawmaker, Taro Kono, called for a Bank of Japan rate hike to address the weak yen and fiscal sustainability, echoing similar calls from U.S. Treasury Secretary Scott Bessent [4].

Bitcoin options markets reflected heightened bearish sentiment, with the 30-day delta skew (put-call) reaching 12%, its highest level in over four months. This indicator, which typically oscillates between -6% and +6% under balanced conditions, suggests extreme fear among investors. Historical patterns show that similar spikes in the metric, such as the 13% level seen in April, were followed by significant rebounds. Traders who held positions during those periods saw gains of up to 40% in the following month, indicating that current bearish signals may not reflect the end of the bull market [1].

The broader market dynamics were also shaped by shifting investor allocations. While bitcoin ETFs reported net outflows on Friday, they posted $547 million and $2.9 billion in weekly inflows for BTC and ETH, respectively. Ether funds hit a record $2.9 billion in weekly inflows, marking their 14th consecutive week of positive flows. This resilience suggests that institutional demand remains strong, despite short-term turbulence [3]. Meanwhile, UBS raised its gold price forecast to $3,700 by 2026, citing a weaker dollar, below-trend economic growth, and concerns about U.S. fiscal deficits [1].

Investors now focus on the Fed’s annual Jackson Hole symposium and upcoming jobless claims data for signals about the central bank’s future policy direction. The FOMC minutes release, which could clarify the Fed’s stance on rate cuts, remains the key event on the horizon. A delayed or uncertain response from the central bank could reignite risk-off behavior, potentially deepening corrections across equities, bonds, and cryptocurrencies [5].

Source:

[1] Why is Bitcoin crashing and will $112K be the final bottom? (https://cointelegraph.com/news/why-is-bitcoin-crashing-and-will-112k-be-the-final-bottom)

[2] This economist said in 2018 that bitcoin was more likely to drop to $100 than hit $100k heres what he says he got wrong (https://www.marketwatch.com/story/this-economist-said-in-2018-that-bitcoin-was-more-likely-to-drop-to-100-than-hit-100k-heres-what-he-says-he-got-wrong-45a7b406)

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

[4] Japan's 10-year Bond Yield Hits Highest Since 2008 (https://www.coindesk.com/markets/2025/08/20/japan-s-10-year-bond-yield-hits-highest-since-2008-in-potential-ill-omen-for-risk-assets)

[5] FOMC Minutes: Stocks May Fall if the Fed Seems Unsure ... (https://www.tastylive.com/news-insights/Stocks-Fear-the-Fed-Will-Disappoint-Again.-Will-FOMC-Minutes-Help)