Bitcoin News Today: Regulators and Macroeconomics Cast Shadow Over Alt Season Optimism

Alt season interest has experienced a sharp decline in recent weeks, marked by a significant drop in Bitcoin’s price and broader uncertainty within the cryptocurrency market. Bitcoin, which had touched a record high of $124,176, fell below $113,000 for the first time in over two weeks, triggering the liquidation of over $113 million in leveraged long positions. The sudden shift has raised concerns among traders and investors, with the BTC options market signaling an extreme bearish sentiment. The 30-day options delta skew metric at Deribit reached 12%, its highest level in over four months, indicating heightened caution and fear among market participants [1].

The decline has been attributed to several macroeconomic factors, including the U.S. imposing new 50% import duties on a wide range of aluminum- and steel-containing products. The move, which affects everyday goods like car parts and plastics, has sparked concerns over potential supply chain disruptions and rising inflation. Analysts at UBS recently raised their gold price forecast to $3,700 by September 2026, citing a weaker dollar and broader economic uncertainties as key drivers. These developments have contributed to a shift in risk appetite, with investors increasingly seeking safer assets like gold and moving away from high-beta cryptocurrencies [1].

Further compounding the uncertainty is the ongoing U.S. Securities and Exchange Commission (SEC) investigation into Alt5 Sigma, a company linked to World Liberty Financial—a firm connected with Donald Trump. The investigation, reportedly focused on allegations of fraud and stock manipulation, has added to the negative sentiment surrounding crypto-linked investments. World Liberty Financial, which has raised over $550 million through public token sales, is currently under scrutiny, with Eric Trump set to join Alt5 Sigma’s board. This has raised questions about the legal and regulatory environment for crypto firms tied to high-profile political figures [1].

Despite the volatility, some analysts remain optimistic about Bitcoin’s long-term prospects. Bernstein, a leading brokerage firm, reaffirmed its conviction that Bitcoin could reach $200,000 in this cycle, emphasizing that Ethereum and Solana are well-positioned to lead the next phase of growth. The firm highlighted the increasing adoption of institutional-grade crypto infrastructure and the role of regulated exchanges and payment platforms in capturing significant inflows. Robinhood, Coinbase, and Circle were specifically noted as beneficiaries of this trend, with Coinbase playing a central role in U.S. institutional custody and trading infrastructure [3].

Market data indicates that recent pullbacks may not necessarily signal the end of the bull cycle. ETFs tracking Bitcoin and Ethereum recorded net inflows of $547 million and $2.9 billion, respectively, for the week ending August 18, despite short-term outflows on Friday. Ether, in particular, continues to show resilience, maintaining a 15% gain for the month. While Bitcoin trades below its monthly average, the broader crypto market remains in a bullish phase, with many viewing the current correction as a healthy and strategic cooldown rather than a sign of systemic weakness [2].

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

[3] Bitcoin To $200,000 Is Bernstein's 'Highest Conviction,' But ... (https://finance.yahoo.com/news/bitcoin-200-000-bernsteins-highest-213120981.html)