Bitcoin News Today: Whales Accumulate as Bitcoin Tests $113K Amid Regulatory Storm

Bitcoin continued its downward trend on Wednesday, slipping below $113,000 following a failed attempt to break above $116,000, according to recent market data. The cryptocurrency had reached a peak of $124,176 earlier in the week, but has since faced increasing pressure due to macroeconomic headwinds and regulatory uncertainties. At the time of reporting, the total market capitalization of cryptocurrencies stood at approximately $3.82 trillion, reflecting a broader sense of caution among investors [1].

The decline has triggered heightened anxiety among short-term holders, with on-chain data showing that over 20,000 BTC held for less than 155 days were sold at a loss since Sunday. Glassnode reported that loss-taking peaked on Tuesday, with 23,520 BTC sent to exchanges during a 3.5% drop from $118,600 to $114,400. Despite these selling pressures, analysts remain cautious about the likelihood of Bitcoin falling below $100,000, citing resilient technical support levels that may cushion the price [1].

Regulatory scrutiny has also played a role in the market’s volatility. The U.S. Securities and Exchange Commission (SEC) is investigating Alt5 Sigma, a firm recently partnered with World Liberty Financial. This development has heightened concerns about the broader regulatory risks facing the crypto industry, particularly as institutions and investors reassess exposure to digital assets [2]. The partnership with World Liberty Financial, which has raised over $550 million through public token sales, has drawn additional scrutiny, raising questions about the legal boundaries of token offerings and DeFi platforms.

Meanwhile, broader market dynamics continue to weigh on risk assets. The Nasdaq 100 fell more than 1.5% following disappointing results from MIT's NANDA AI deployment research, which found limited immediate revenue impact from AI pilots. Added to this, new U.S. import tariffs of up to 50% on certain aluminum and steel products have raised concerns about inflation and supply chain disruptions. UBS has raised its gold price forecast to $3,700 by September 2026, indicating a shift toward alternative stores of value amid economic uncertainty [2].

On the technical front, Bitcoin’s price dip has triggered a surge in put-call delta skew in the options market, rising to 12%—the highest level in over four months. This indicates growing fear among institutional investors, who are increasingly seeking downside protection. However, historical data suggests that such extreme bearish sentiment often precedes a rebound. In April, Bitcoin fell below $74,500 amid similar conditions but recovered by over 40% within a month. If Bitcoin manages to hold above $112,000, analysts suggest it could regain momentum toward $120,000 [2].

Notably, on-chain data from Santiment shows that Bitcoin whales and sharks (holders of 10 to 10,000 BTC) have continued to accumulate during the downturn. Over 20,000 BTC has been added since August 13, amounting to $2.3 billion in value, with cumulative accumulation reaching 225,320 BTC since March. This behavior aligns with historical patterns where large holders have acted as a bellwether for future price movements. The continued accumulation suggests that long-term bullish sentiment remains intact, despite near-term volatility [2].

Source: [1] Crypto market losing steam? Bitcoin slides toward $113,000 after $124,000 peak, Ethereum near $4,100 (https://timesofindia.indiatimes.com/business/cryptocurrency/crypto-market-losing-steam-bitcoin-slides-toward-113000-after-124000-peak-ethereum-near-4100-what-experts-have-to-say/articleshow/123401836.cms) [2] Bitcoin Faces $113K Support Test Amid Regulatory Concerns and Macro Headwinds (https://www.fxleaders.com/news/2025/08/20/bitcoin-faces-113k-support-test-amid-regulatory-concerns-and-macro-headwinds/)