Bitcoin News Today: Whales and PCE Data Drive Bitcoin's Volatile Crossroads

Bitcoin’s price has experienced renewed volatility as market participants closely monitor the behavior of large holders and macroeconomic indicators. The cryptocurrency fell below $109,500 this week amid concerns over “whale” selling, prompting traders to draw parallels with prior patterns in August. On-chain data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair dropped by $3,000 in a short span, reaching a low of $109,436 on Bitstamp, with over $350 million in liquidations recorded in a 24-hour period. Analysts suggest that these movements may be the result of deliberate liquidity shifts by large investors, often referred to as “Spoofy the Whale,” aimed at influencing short-term price action and testing market resilience [1].

Traders have observed a recurring pattern in Bitcoin’s price behavior over the past month, marked by consolidation, capitulation, and occasional breakouts. This has led to speculation that the market is entering a prolonged capitulation phase, potentially offering strategic entry points for investors. Keith Alan, co-founder of Material Indicators, highlighted these manipulative liquidity shifts in a recent post, reinforcing the view that whale activity plays a critical role in shaping market sentiment [1]. Meanwhile, long-term bullish sentiment remains contingent on Bitcoin maintaining key support levels. A weekly close above $114,000 is seen as a crucial threshold to avoid a deeper correction. If this level fails, the price could face further downward pressure, potentially falling as low as $103,700 according to bear flag patterns [2].

Amid ongoing price uncertainty, the U.S. Personal Consumption Expenditures (PCE) index, a key inflation gauge, is expected to influence the next phase of Bitcoin’s movement. The release of this data on Friday has heightened market attention, as investors await signals that may confirm or challenge expectations for a Federal Reserve interest rate cut in September. Analysts such as Kyle Doops have noted that the PCE report could either exacerbate the current decline or trigger a relief rally, depending on its outcome [1]. The broader macroeconomic environment remains a focal point, with inflationary pressures and central bank policies continuing to impact risk assets globally.

In a more optimistic outlook, institutional demand has been cited as a potential driver for Bitcoin’s long-term appreciation. According to a report from Tiger Research, global liquidity, ETF accumulation, and the recent regulatory approval of 401(k) crypto allocations could propel the price toward $190,000 by the third quarter of 2025. The firm argues that a 1% allocation of the $8.9 trillion U.S. retirement account market to Bitcoin could generate nearly $90 billion in demand, signaling a structural shift in market dynamics. Additionally, Michael Saylor’s MicroStrategy (MSTR) has continued to accumulate large blocks of Bitcoin, currently holding over 629,000 coins with a market value exceeding $71 billion [3].

While bullish projections remain, caution is warranted as on-chain indicators suggest a market that is active but not yet in a euphoric state. Metrics such as the MVRV-Z score and the Net Unrealized Profit/Loss (NUPL) ratio indicate that the market remains balanced, with modest gains being locked in rather than aggressive selling. These conditions suggest that while Bitcoin is still in a strong accumulation phase, a correction may be imminent if key support levels fail. Investors are advised to monitor both technical levels and macroeconomic data as the market continues to navigate uncertainty.

Source:

[1] Bitcoin whales send BTC price under $109.5K as market '... (https://cointelegraph.com/news/bitcoin-whales-send-btc-price-under-109-5k-market-wobbles-into-us-pce)

[2] BTC must close week above $114K to avoid 'ugly' correction (https://cointelegraph.com/news/bitcoin-traders-btc-must-close-week-above-114k-ugly-correction)

[3] Bitcoin Headed to $190K on Institutional Wave, Research ... (https://www.coindesk.com/markets/2025/08/29/bitcoin-headed-to-usd190k-on-institutional-wave-research-firm-says)