Bitcoin fell to $115,000 in early trading as investors took profits after the asset touched a new all-time high of $124,496 last week, marking the fourth peak of the year. The pullback followed a broader market reaction to inflation data showing higher-than-expected July wholesale prices, which raised doubts about the likelihood of a September interest rate cut by the U.S. Federal Reserve. According to CoinGlass, over $530 million in long positions were liquidated in the past 24 hours, with $124 million attributed to Bitcoin and $184 million to Ether. This forced selling pushed prices lower and triggered a market-wide deleveraging, with traders scrambling to cover debts as the price slid past $114,700 at one point [1].
The decline in Bitcoin came as a surprise to many market participants who had anticipated a consolidation phase after the asset’s recent rally. Analysts from Santiment noted that the Market Value to Realized Value (MVRV) ratio is currently at +21%, signaling an overvalued position and increasing the probability of profit-taking. While this level is not extreme historically, it is considered a “mild danger zone” that could encourage traders to unwind long positions [2]. Meanwhile, Bitfinex analysts highlighted that the rally fizzled due to a lack of macroeconomic catalysts and that the market is now entering a consolidation phase as investors await key developments [2].
The broader cryptocurrency market mirrored Bitcoin’s performance, with the CoinDesk 20 index falling 1.2% and major tokens such as Ether declining by 2.5%. Ether, which had approached its all-time high of $4,800 last week, dropped to $4,354. The pullback was attributed to a combination of macroeconomic concerns and profit-taking activity, as traders reevaluated their exposure ahead of potentially pivotal U.S. central bank decisions later in the year. The S&P 500 also saw a pause in its rally, hovering near record levels as investors turned cautious [3].
Market participants are now turning their attention to the Federal Reserve’s annual Jackson Hole Economic Symposium, where Fed Chair Jerome Powell is expected to address the central bank’s stance on interest rates. With nearly 83.6% of traders expecting a rate cut by September 17, the outcome of Powell’s speech could significantly influence Bitcoin’s near-term trajectory. If the Fed adopts a “wait-and-see” approach, analysts predict Bitcoin may consolidate within a $115,000–$120,000 range, with a breakdown potentially exposing support levels at $112,000 [3].
Despite the recent sell-off, long-term holders, or “whales,” appear unfazed. Santiment noted that wallets holding 10–10,000 BTC have continued to accumulate aggressively, even after the recent high. This suggests that institutional or high-net-worth investors remain bullish on Bitcoin’s future price action. Furthermore, crypto ETFs tracking Bitcoin and Ether reported strong inflows over the past week, with Ether funds seeing record inflows for the 14th consecutive week [1]. These figures indicate continued institutional confidence in the asset class, despite short-term volatility.
Source: [1] crypto-market-today (https://www.cnbc.com/2025/08/18/crypto-market-today.html) [2] Bitcoin Price Danger Zone (https://cointelegraph.com/news/bitcoin-price-danger-zone-consolidation-profit-takers-analysts) [3] Bitcoin, Ethereum Slip (https://finance.yahoo.com/news/bitcoin-ethereum-slip-as-crypto-markets-pull-back-after-hitting-2025-highs-155818704.html)
