Bitcoin News Today: Short-Term Panic Drives $1.3B Crypto Exodus as Bitcoin Retreats Toward $110K

Bitcoin holders are currently navigating a volatile market, marked by significant outflows and panic selling by short-term investors. On Tuesday, spot Bitcoin exchange-traded funds (ETFs) recorded $523 million in outflows, a sharp rise compared to the previous day, with Ether (ETH) ETFs also experiencing substantial losses totaling $422 million. This marked the second-largest outflows for both assets this month, according to Farside Investors data. The combined outflows for Bitcoin and Ether funds have reached $1.3 billion over the past three days, coinciding with price corrections of 8.3% and 10.8%, respectively, since last Wednesday [4].

Short-term Bitcoin holders have intensified their selling activity, with over 20,000 BTC moved to exchanges at a loss since Sunday. This behavior suggests a potential price drop toward $110,000 and reflects a weakening momentum among speculative investors. Onchain data from CryptoQuant indicates that most of the Bitcoin sent to exchanges at a loss is attributed to short-term holders (STHs), with long-term holders (LTHs) making up just 10% of the total volume to exchanges. This pattern is commonly observed during market dips, with STHs often realizing losses under pressure [5].

Bitcoin’s price has retreated below $116,000, as uncertainty ahead of Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium has led investors to reassess risks. The latest price action has brought renewed attention to the $100,000–$110,000 price level, which has served as a critical support zone for over 100 days. A break below this range could signal a deeper correction, according to some market analysts. The market is closely watching whether this consolidation phase represents a healthy reset or the start of a more significant downturn [5].

The broader crypto market has also experienced a downturn, with the CoinDesk 20 index, a measure of the major cryptocurrencies, declining by 1.2%. The market’s volatility was exacerbated by liquidation events, as over $530 million in forced selling of long positions occurred within a 24-hour period. Bitcoin liquidations amounted to $124 million, while Ether liquidations totaled $184 million. These figures reflect a sharp sell-off driven by traders forced to offload assets at market price to cover debts [2].

Investor sentiment has shifted toward caution, as reflected in the Crypto Fear & Greed Index, which has dropped to a "Fear" score of 44. This indicates a notable departure from the previous "Greed" phase and highlights growing uncertainty among market participants. While the recent outflows do not necessarily signal a collapse of investor interest, they suggest a more risk-averse approach as prices fluctuate. Analysts caution that this behavior may be a natural part of the market cycle, with some viewing it as a necessary reset before the next potential rally [4].

Looking forward, the market is closely monitoring key economic indicators and central bank policy decisions, particularly the outcome of the Federal Reserve’s upcoming meetings. A potential rate cut in September could influence Bitcoin’s trajectory, as macroeconomic factors continue to shape investor sentiment. Despite the recent volatility, the broader trend remains bullish, with Bitcoin’s 50-day moving average acting as a critical support level. A decisive break below this level could open the door for further corrections, while a rebound above the $123,217 resistance could signal renewed momentum [6].

Source: [1] title1 (https://cointelegraph.com/news/crypto-funds-bleed-bitcoin-outflows-surge-5x-ether-outflows-double) [2] title2 (https://www.cnbc.com/2025/08/18/crypto-market-today.html) [3] title3 (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) [4] title4 (https://cointelegraph.com/news/will-bitcoin-price-fall-to-110k-short-term-holders-sell-22k-btc-at-a-loss) [5] title5 (https://cointelegraph.com/news/will-bitcoin-price-fall-to-110k-short-term-holders-sell-22k-btc-at-a-loss) [6] title6 (https://www.mitrade.com/insights/news/live-news/article-3-1052333-20250820)