Bitcoin News Today: OG Whales, Fed Drama, and a Market on Edge: What’s Stalling Bitcoin’s Rise?

Bitcoin's price has dropped below $112,000, reigniting concerns about a potential correction in the cryptocurrency market. Analysts are attributing the decline to a combination of selling pressure from early investors, macroeconomic uncertainties, and technical indicators signaling bearish momentum. The drop comes after Bitcoin briefly surged to an all-time high of $124,496 earlier in August, fueled in part by expectations of Federal Reserve rate cuts.

Willy Woo, a prominent cryptocurrency analyst, has highlighted that the concentration of Bitcoin supply among early investors—often referred to as “OG whales”—is a key factor in the current price stagnation. These early investors, who acquired Bitcoin at prices as low as $10, require significant new capital to absorb each BTC they sell. As a result, Woo argues that Bitcoin may experience "growing pains" as these large holders gradually offload their holdings. However, Parman, another crypto advocate, has countered that early holders are unlikely to sell large portions of their holdings, suggesting the impact may be limited to small-scale sales of up to 10,000 BTC at a time [1].

The recent drop has also coincided with a volatile trading environment marked by sharp price swings. On Sunday, a single whale liquidated 24,000 BTC, valued at over $2.7 billion, triggering a flash crash that sent Bitcoin's price plummeting from $114,000 to $110,000 within minutes. This volatility has been further exacerbated by conflicting signals from Federal Reserve officials. While Chair Jerome Powell gave a dovish speech at the Jackson Hole symposium, suggesting potential rate cuts, other officials like Beth Hammack have warned against premature easing due to persistent inflationary pressures. Hammack’s remarks triggered a renewed sell-off in Bitcoin and other cryptocurrencies [2].

Technical indicators are also pointing to potential further declines. Bitcoin has formed an "ascending wedge" pattern on its chart, typically associated with a downward breakout. This pattern, combined with a "shooting star" formation on the weekly chart, has raised concerns among traders and analysts. If Bitcoin continues to decline, it could test support levels as low as $100,000. Some traders, such as Honey and Killa, have suggested a DCA (Dollar-Cost Averaging) strategy as a potential approach to accumulate Bitcoin during this period of volatility [2].

Market sentiment has shifted toward caution, with the crypto fear and greed index falling to 56, nearing “fear” territory. This decline underscores the heightened anxiety among investors following Bitcoin’s sharp correction from its recent peak. While some analysts, like Anthony Pompliano, believe the current pullback signals a maturing market and predict a rebound in September, others remain skeptical about the long-term sustainability of Bitcoin’s rally [1].

The broader cryptocurrency market has also been impacted, with altcoins like Ethereum experiencing significant price swings. Ethereum reached a new all-time high over the weekend but has since retreated, reflecting the broader uncertainty in the market. Institutional adoption and regulatory developments continue to influence market dynamics, particularly with corporate entities and ETFs showing increased interest in holding and staking Ethereum. However, the same macroeconomic factors that have driven Bitcoin’s volatility are also affecting Ethereum and other major cryptocurrencies [5].

As the market braces for further uncertainty, the coming weeks will be critical in determining whether Bitcoin can stabilize and regain its upward momentum or if the current bearish trend will persist. Investors and traders are closely monitoring the Federal Reserve's policy decisions, particularly the outcome of the Jackson Hole symposium, for guidance on the potential path of interest rates and their impact on liquidity in the crypto space [7].

Source:

[1] title1 (https://www.benzinga.com/crypto/cryptocurrency/25/08/47301069/bitcoin-not-rising-quickly-enough-analyst-says-early-hodlers-could-be-the-reason)

[2] title2 (https://investx.fr/en/crypto-news/bitcoin-risk-crash-interest-rates-shouldnt-lowered/)

[3] title3 (https://blockchain.news/flashnews/bitcoin-btc-price-setup-higher-low-watch-or-new-lows-for-accumulation-volatile-week-ahead-per-cryptomichnl)

[4] title4 (https://intellectia.ai/news/crypto/urgent-bitcoin-price-drop-sees-btc-fall-below-114000)

[5] title5 (https://www.cnbc.com/2025/08/24/crypto-market-today.html)

[6] title6 (https://cryptopotato.com/300m-in-longs-liquidated-in-1-hour-bitcoin-crashes-ethereum-rejected-at-5k)

[7] title7 (https://www.forbes.com/sites/digital-assets/2025/08/19/wall-street-issues-serious-66-trillion-crypto-warning-as-price-crash-fears-hit-bitcoin-ethereum-and-xrp/)