Bitcoin Price Falls to $113K After $1B Liquidations as Powell, ETFs Shape Outlook
BTC-USD tests $112K support; whales buy into weakness as forecasts split from $70K to $1.5M | That's TradingNEWS
BTC-USD Struggles After All-Time High
Bitcoin’s explosive climb to $124,500 per BTC-USD has given way to a sharp correction, with current trading near $113,244–$115,517. Over $250 billion in crypto market cap has been erased in one week, underscoring how fragile sentiment has become when leverage collides with macro uncertainty.
Liquidations Clear Out Excessive Leverage
CoinGlass data shows more than $1 billion in trader liquidations, with 95% hitting long positions. Within an hour, $116 million in Bitcoin longs vanished, while Ethereum (ETH-USD) lost $170 million and BTC itself contributed $104 million. The drop drove BTC below $114,000, testing its 50-day EMA at $115,875 and nearing its 100-day SMA at $110,950. If the $112,000 pivot breaks, order books reveal $25 million in bid support waiting between $105,000–$107,000.
Profit-Taking Dominates As Holders Cash In
The MVRV ratio at 21% signals that most BTC holders remain well in profit, historically a trigger for selling waves. On-chain data confirms this is Bitcoin’s third major profit-taking cycle of 2025. The Fear & Greed Index fell to 56, the lowest since August’s retest of $112,000, reflecting fading optimism that the Fed will deliver a bold September cut.
Federal Reserve and Powell’s Jackson Hole Signal
Jerome Powell’s upcoming Jackson Hole speech is now pivotal. Treasury Secretary Scott Bessent hinted a 50 bps cut could echo the surprise 2024 easing that sparked BTC’s rally before the U.S. election. Yet Polymarket odds of no September cut jumped from 12% to 26%, showing traders fear tariffs may keep inflation sticky. Powell’s tone will dictate whether BTC-USD attracts fresh liquidity or stays under pressure.
ETF Outflows Challenge Institutional Confidence
Spot Bitcoin ETFs posted their first net outflow in weeks, losing $121 million. BlackRock’s IBIT shed $68 million, its first redemption since August 5, Fidelity’s FBTC dropped $42 million, and ARKB lost $11 million. Total ETF AUM remains a massive $152 billion, but the timing of redemptions alongside profit-taking raises questions. At the same time, Dutch firm Amdax unveiled a $24B treasury vehicle (AMBTS B.V.) aiming to acquire 1% of BTC supply, echoing MicroStrategy’s (MSTR) strategy and showing long-term conviction persists.
Technical Levels Define Market Nerves
BTC is trapped between $116,000 and $117,462 resistance, with RSI neutral at 51 and MACD momentum flattening. A breakout above $118,047 reopens the path to $120,374–$124,000, while support lies at $114,650 and $112,680. Failure here points to $105,000–$107,000, with structural support anchored at the 200 EMA near $103,000.
Altcoins React With Mixed Signals
Bitcoin’s dominance slipped back to 59%. Ethereum (ETH-USD) trades at $4,141 (-4.14%), XRP (XRP-USD) at $2.90 (-3.17%), and Solana (SOL-USD) at $176.77 (-2.77%). Outliers include HBAR up 23% with targets at $0.37–$0.50, and Stellar (XLM) hinting at 41%–144% upside on adoption catalysts. Remittix (RTX) secured $20.2M in funding, sold 608M tokens, and confirmed a BitMart listing, tying its utility to the $19T remittance industry.
Stablecoin Bill Sparks Political and Banking Tensions
The Genius Act stablecoin bill rattled major U.S. banks. JPMorgan (JPM) and Bank of America (BAC) warned of up to $6.6T in deposit flight, as yield-bearing stablecoins lure savers. Meanwhile, Tether (USDT-USD) faces growing rivalry from PayPal, Stripe, Meta, and the Trump-backed World Liberty Financial, embedding stablecoins into electoral politics. Stablecoins are no longer neutral — they are a campaign weapon.
Options Market Shows Fear but Precedent Favors Bounce
Options skew spiked to its highest in four months as demand for protective puts surged. A similar 13% jump in April was followed by an $11,474 rally in four days, hinting at a local floor near $114,755. Top traders at OKX and Binance are still holding longs, waiting for a retest of $112,000 before reloading.
Institutions Accumulate While Retail Exits
In Asia, USDT/CNY trades at a 0.8% discount, reflecting retail caution. Yet whales have accumulated more than 218,000 BTC since March, a classic divergence where institutions use weakness to expand holdings. Retail investors panic-sell, while deep pockets prepare for the next wave.
