Bitcoin News Today: Short-Term Bitcoin Sellers Trigger Market Jitters and Key Price Watchpoints

Bitcoin faces potential further downward pressure as short-term holders (STHs) continue to offload coins at a loss to exchanges. Over 20,000 BTC were moved to exchanges at a loss by STHs in just three days, according to on-chain analytics from CryptoQuant and Glassnode. The movement of these assets, held for less than 155 days, reflects a bearish shift in investor sentiment and could signal a deeper correction in Bitcoin’s price. The STH sales have coincided with a 3.5% drop in BTC’s price to $114,400 from $118,600. Analysts note that this pattern of panic selling among short-term holders is not new—such behavior was observed during January’s market correction, which preceded a strong rebound. However, the current context raises concerns that this could be the start of another downturn or a prolonged consolidation phase. The STH SOPR (Sales Over Realized Price) multiples have dropped below 1 for the first time since January 2025, marking a critical turning point in market dynamics.

The recent outflows are also reflected in the broader market environment. Bitcoin’s price has pulled back below $116,000, with traders and analysts now watching closely whether it can maintain its position above key support levels. If BTC breaks below $115,000, further declines toward the $110,000–$112,000 range are expected. Swissblock, a trading firm, highlighted that breaking through the $100,000–$110,000 resistance wall—maintained for over 100 days—would represent a “tough fight for bears.” Meanwhile, prediction market platform Polymarket forecasts a 73% probability of BTC closing at $114,000 by the end of the week, with 39% odds of dropping below $112,000. AlphaBTC, a popular Bitcoin analyst, also pointed to the $110,000–$112,000 zone as a key demand area. These developments indicate a high degree of uncertainty as the market awaits the Federal Reserve’s response to inflation and interest rates.

The outflows and price volatility are further exacerbated by the broader context of ETF activity. While spot Bitcoin ETFs have not seen significant outflows, the Ethereum ETF landscape has seen a notable shift. Over the past week, spot Ether ETFs have recorded outflows of nearly $200 million, marking the second-largest daily outflows since their launch. According to SoSoValue, the most significant outflows occurred on August 18, with nearly $197 million leaving these funds. BlackRock and Fidelity, two of the largest issuers, accounted for the majority of these outflows. BlackRock’s iShares Ethereum Trust ETF (ETHA) alone saw $87 million in outflows, while Fidelity’s Ethereum Fund (FETH) experienced $79 million in outflows. These figures contrast with the $3.7 billion inflow streak seen earlier in the month, highlighting the shifting investor sentiment from ETH to BTC. However, the outflows for Ether ETFs do not directly correlate with Bitcoin’s current pressure, suggesting a broader market realignment.

The Ethereum unstaking queue has also reached record levels, adding to the uncertainty in the market. As of August 19, the unstaking queue hit an all-time high of 910,000 ETH, worth approximately $3.9 billion. This indicates that a growing number of Ethereum validators are attempting to unstake their assets, potentially leading to an “unstakening” scenario where liquidity dries up. ValidatorQueue data shows that the average waiting time for unstaking has increased to 15 days and 14 hours, which could slow the movement of large ETH positions into the market. Some analysts have raised concerns that this could trigger a further correction in ETH’s price or create additional selling pressure for BTC as investors shift positions.

On the other hand, Bitcoin’s supply dynamics remain stable despite recent outflows. CryptoQuant has pushed back against claims of a "supply shock" for Bitcoin, noting that the decline in exchange-held BTC has merely been offset by an increase in ETF custody. The firm’s data shows that the overall supply of BTC in both exchange and ETF custody remains unchanged from previous years, effectively shifting the custody structure rather than reducing the available supply. This clarification is critical in understanding the true market dynamics at play. While ETF inflows have provided a structural support mechanism for BTC, the recent outflows and panic selling among STHs suggest that the market is still in a delicate balancing act.

As Bitcoin consolidates and faces downward pressure, market participants are closely watching key technical levels and ETF activity for further clues on its direction. If the current wave of loss realization is absorbed quickly and the market stabilizes, it could mirror past corrections that paved the way for strong rebounds. However, if the selling pressure persists and STHs continue to offload BTC at a loss, it may signal a breakdown in the bullish trend and a deeper correction. With the Federal Reserve’s upcoming decisions and the potential influence of macroeconomic factors, the next few weeks will be crucial in determining whether Bitcoin can regain its upward momentum or succumb to further bearish pressure.

Source: [1] Will Bitcoin Price Fall to $110K? Short-Term Holders Sell 22K BTC at a Loss (https://cointelegraph.com/news/will-bitcoin-price-fall-to-110k-short-term-holders-sell-22k-btc-at-a-loss) [2] Bitcoin Short-Term Holders Flip To Losses For First Time Since January (https://www.mitrade.com/insights/news/live-news/article-3-1052333-20250820) [3] Spot Ether ETFs See $197M Outflows, Second-Largest Ever (https://cointelegraph.com/news/ether-etfs-197m-outflows-second-largest) [4] Bitcoin Outflows Don't Mean Supply Shock—It's Just ETFs (https://bitcoinist.com/bitcoin-outflows-supply-shock-just-etfs-cryptoquant)