Bitcoin continues to struggle around the $108,000 level, with traders facing renewed uncertainty amid signs of large-scale selling and muted market activity during the U.S. Labor Day holiday.
The cryptocurrency traded at $108,711 on Sunday, showing little momentum for a rebound as broader market sentiment weighed heavily on the asset.
Whale Selling and ETF Weakness
Investor confidence has been shaken by reports of long-dormant Bitcoin wallets transferring coins into the market, with some proceeds converted into Ether.
At the same time, inflows to spot Bitcoin ETFs have slowed, removing another source of support for prices.
This negative environment has been compounded by a weak performance in U.S. stock markets, with the Dow, S&P 500, and Nasdaq all closing the week lower.
President Trump’s shifting stance on tariffs and his attempts to exert influence over the Federal Reserve board have also added to the uncertainty.
Market Dynamics and Technical Signals
Some investors remain hopeful that the Fed could begin cutting interest rates as soon as late September or October. However, these expectations have done little to boost short-term sentiment.
From a technical perspective, activity in the perpetual futures market continues to dominate price action.
Data shows significant selling pressure from larger cohorts of traders on platforms like Binance, outweighing buying activity in both spot and futures markets.
Retail investors, however, appear more willing to buy dips, particularly in the $112,000–$111,000 range and again at $107,200. This buying activity marks the first significant upside order book signal since late June, when Bitcoin briefly fell below $98,000.
Key Support Levels
Charts suggest notable downside liquidity remains at $104,000, with shorter-term bids emerging at $105,000, $102,600, and $100,000.
Deeper bids in the $99,000 to $92,000 zone indicate some traders are preparing for further declines.
Despite the dip-buying enthusiasm, overall liquidity conditions favor sellers, making it harder for Bitcoin to establish sustained upward momentum.
With U.S. markets closed for the holiday and large Bitcoin holders continuing to offload positions, analysts believe downside risks will remain in play for the near term.
Bitcoin has suffered a sharp pullback after hitting its all-time high earlier this year.
The cryptocurrency has fallen more than 13.75% from its record peak of $124,500, now trading at around $108,791.
This drop broke below its multiyear uptrend support, raising concerns of a deeper market correction.
Historical Patterns Raise Red Flags
Bitcoin’s bull markets have traditionally relied on parabolic support curves as a foundation for sustained rallies.
Temporary dips below this curve have not always been fatal, so long as the relative strength index (RSI) maintained its momentum.
Trouble has historically emerged when both parabola and RSI support failed.
In 2013, that scenario triggered an 85% crash from $1,150 to $150.
A similar breakdown in 2017 led to an 84% plunge from nearly $20,000 to $3,100.
Again in 2021, Bitcoin lost both supports and tumbled 77% from $69,000 to roughly $15,500.
The Current Outlook
By late August 2025, Bitcoin slipped under its long-term trendline support.
However, RSI remains above its critical uptrend, leaving some room for optimism.
The key test will come if RSI weakens.
A breakdown there could send Bitcoin toward its 50-week exponential moving average, around $80,000, by year’s end.
Such a move would mirror previous cycle corrections that reset investor sentiment before renewed rallies.
Analysts Suggest Pullback Could Be Temporary
Some analysts argue that the current correction may not signal the end of the bull cycle.
BitBull, a popular crypto market commentator, described the recent breakdown as a possible “fakeout.”
Even a move briefly under $100,000 could fit Bitcoin’s historical pattern of forcing out weaker hands before rebounding, he argued.
That would put the $80,000–$100,000 range as both a bearish target and a potential launchpad for the next upward move.
Cycle Indicators Suggest Room to Grow
Market analyst SuperBro pointed to the Pi Cycle Top model, a long-trusted tool for identifying Bitcoin’s cycle peaks.
The model tracks two moving averages: the 111-day simple moving average and twice the 350-day simple moving average.
When the 111-day line rises to cross above the 350-day x2 line, it has historically marked major cycle tops.
These crossovers were evident in 2013, 2017, and 2021 — each followed by sharp corrections.
At present, however, the crossover has not occurred.
SuperBro believes this indicates Bitcoin has not yet reached its peak and forecasts a possible top at $280,000.
Investor Sentiment at a Crossroads
Despite the pullback, Bitcoin’s long-term cycle signals remain intact.
For now, the correction resembles past volatility episodes that preceded stronger rallies.
If RSI holds and cycle indicators stay supportive, analysts suggest that the latest decline could ultimately prove to be a consolidation phase rather than the start of a long downturn.
Bitcoin tumbled below $108,000, marking its lowest level in 50 days.
The drop triggered $137 million in liquidations of leveraged long positions, catching traders off guard.
The decline followed weakness in the Nasdaq 100, which fell 1.2% amid doubts over the long-term strength of the artificial intelligence sector.
Trade Deficit Adds to Investor Concerns
Market sentiment worsened after the U.S. reported a 22% jump in its July trade deficit.
The gap between imports and exports widened to $103.6 billion, exceeding forecasts.
Economists warned this could drag on economic growth in the third quarter, adding to uncertainty.
Insider Sales Signal Caution
Investor unease deepened after data revealed an unusual trend in insider trading activity.
X user Malone_Wealth noted that the top 200 trades by executives and large shareholders last week were all sales.
Major moves included Walmart’s Jim C. Walton with $961 million, Snowflake’s Frank Slootman at $164 million, and Amer Sports’ Dennis J. Wilson with $160 million.
Other significant sales included Dutch Bros’ Travis Boersma at $81.5 million and Klaviyo’s Andrew Bialecki at $73.7 million.
Chinese Banking Stress Adds Pressure
China added another layer of concern.
Its five largest banks reported record-low margins and rising delinquencies, with retail banks writing off $5.2 billion in bad loans in the first quarter—an eightfold jump year-on-year.
The figures highlighted mounting risks in the Chinese financial system.
AI Sector Weakness Intensifies
Meanwhile, the artificial intelligence sector is showing signs of strain.
Nvidia revealed that nearly half of its data center revenue comes from just two customers, raising questions about reliance.
Despite delivering solid quarterly results, Nvidia shares fell 4.7% over two sessions.
Super Micro Computer, a major Nvidia partner, added to concerns by warning of potential issues in its financial reporting.
Its shares dropped more than 5% as a result.
Bonds Reflect Risk Aversion
In the bond market, investors sought safety in U.S. Treasurys.
The two-year yield fell to 3.62%, its lowest level in four months and down from 3.80% the week before.
This decline suggests growing risk aversion, as investors preferred lower yields in exchange for security.
Outlook for Bitcoin
Alongside these global risks, Bitcoin faces its own pressures.
Long-dormant whales have been selling, while miners continue steady outflows.
Despite these factors, analysts suggest the broader macroeconomic picture remains the primary driver of Bitcoin’s latest decline.
With traders cautious ahead of the U.S. national holiday, volatility could remain elevated in the coming sessions.
Around 27% of British adults would consider including cryptocurrency in their retirement plans, according to a new survey by Aviva.
The findings suggest that crypto could eventually capture a portion of the UK’s multitrillion-pound pension market.
Of those open to crypto in retirement funds, just over 40% said they were motivated by the potential for higher returns.
The survey, conducted by Censuswide between June 4 and 6, polled 2,000 UK adults.
Pension Withdrawals Already Taking Place
The study also revealed that 23% of respondents would consider withdrawing part, or all, of their existing pension savings to invest in crypto.
With over 80% of UK adults holding pensions worth a combined £3.8 trillion, widespread adoption could direct significant capital into the sector.
The survey follows developments in the United States, where President Donald Trump recently signed an executive order permitting 401(k) retirement plans to include Bitcoin and other cryptocurrencies.
The U.S. order potentially opens crypto access to more than $9 trillion in retirement assets.
Young Investors Lead the Way
One in five UK adults surveyed — equivalent to around 11.6 million people — reported holding or having previously held crypto.
Two-thirds of that group still own some form of digital assets.
Among younger investors, particularly those aged 25 to 34, nearly 20% said they had already withdrawn pension funds to invest in crypto.
That group formed a large portion of the 8% of all respondents who admitted to doing the same.
Risks Remain a Major Concern
Despite growing interest, respondents flagged security and regulatory issues as leading concerns.
Hacking and phishing were cited as the biggest risks by 41% of participants, while 37% pointed to a lack of oversight and consumer protection.
Price volatility was identified as the third biggest worry at 30%.
Aviva’s managing director of wealth and advice, Michele Golunska, acknowledged crypto’s appeal but urged caution.
“We mustn’t forget the value of the good old pension,” she said.
“It comes with some powerful benefits, like employer contributions and tax relief, that can make a real difference to your long-term financial wellbeing.”
Regulation Moves Slowly
The UK has been taking gradual steps toward stronger crypto oversight.
In May, regulators unveiled a draft framework to treat exchanges and service providers more like traditional financial firms, focusing on compliance, transparency, and consumer protection.
Banks have been slower to embrace crypto.
According to another survey, 40% of UK investors reported their bank had either blocked or delayed payments to crypto providers.
This cautious approach shows that while enthusiasm for crypto pensions is growing, significant barriers remain.
Japan’s Finance Minister Katsunobu Kato has publicly acknowledged that cryptocurrencies should be considered as part of diversified investment portfolios.
Speaking at Web3 Conference WebX 2025 in Tokyo, Kato said crypto could be a legitimate asset class if proper rules are in place.
“While crypto assets carry the risk of high volatility, by establishing a proper investment environment, they can become an option for diversified investment,” Kato told attendees.
He emphasized that Japan will focus on building a sound trading environment for digital assets as adoption expands.
The remarks marked one of the most direct endorsements of crypto by a sitting Japanese finance minister.
Push for Tax Reform
Kato’s comments follow renewed calls from Japan’s Financial Services Agency (FSA) to overhaul crypto taxation rules.
Currently, crypto gains fall under “miscellaneous income” and are taxed at rates ranging from 15% to 56% depending on the income bracket.
The FSA has asked the government to reclassify crypto gains under a flat tax system similar to stocks, with a rate of around 20.315%.
Officials argue that this change would streamline tax reporting while encouraging wider adoption of cryptocurrencies within Japan’s financial system.
The proposal reflects Japan’s gradual shift toward a more crypto-friendly regulatory stance.
Growing Institutional Involvement
The momentum has also been reflected in corporate activity.
Bitcoin treasury firm Metaplanet has been upgraded from small-cap to mid-cap status under FTSE Russell’s Semi-Annual Review.
The adjustment means Metaplanet is now included in the FTSE Japan Index, boosting its visibility among investors.
At the same time, major Japanese financial groups are embracing blockchain partnerships.
SBI Group has announced new collaborations with Circle, Ripple, and Web3 developer Startale.
It also recently partnered with Chainlink to roll out crypto tools aimed at financial institutions across Asia.
Such moves point to a growing recognition of blockchain as a key driver in the country’s financial innovation.
Stablecoins on the Horizon
Japan’s regulatory framework is also preparing for the introduction of yen-backed stablecoins.
Reports suggest that the FSA could approve their issuance as early as this fall.
The development would mark a significant milestone in Japan’s digital asset strategy, allowing consumers and businesses to transact with blockchain-based tokens tied to the national currency.
Together, Kato’s remarks, proposed tax changes, and institutional adoption signal that Japan is positioning itself as a global hub for regulated crypto activity.
Strategy, the business intelligence firm led by Michael Saylor, appears ready to execute its third Bitcoin acquisition in August, continuing its aggressive accumulation strategy despite recent market headwinds.
If completed, the purchase would add to two smaller transactions already made this month, marking a rare departure from the company’s history of large-scale acquisitions.
The most recent buy took place on August 18, when Strategy purchased 430 BTC for roughly $51.4 million.
That brought its total holdings to 629,376 BTC, worth over $72 billion at current market prices.
Strategy’s Bitcoin Holdings Surge in Value
According to monitoring site SaylorTracker, Strategy’s Bitcoin investment has generated an unrealized gain of more than 56%, equating to $25.8 billion at present valuations.
Despite scaling back the size of recent purchases, Strategy continues to dwarf all other corporate Bitcoin holders, maintaining its status as the largest treasury by a wide margin.
So far in August, the company has added only 585 BTC, far below the thousands or even tens of thousands it typically acquires in single transactions.
Advocating Bitcoin to Institutions
Michael Saylor has become one of the most prominent advocates of Bitcoin in the corporate world.
His push to “orange-pill” both institutional and retail investors has helped shift attitudes in finance, positioning Bitcoin as a legitimate treasury reserve asset.
Strategy’s ongoing purchases reinforce its commitment to that narrative, even as broader equity markets face challenges.
Purchases Do Not Move Markets
One common question is whether Strategy’s large-scale buying activity impacts Bitcoin’s market price.
Shirish Jajodia, the company’s corporate treasurer, recently addressed the issue in a podcast interview with Natalie Brunell.
He explained that Strategy uses over-the-counter (OTC) channels and private deals rather than buying on open spot exchanges.
This method avoids sudden price spikes and prevents significant disruption to Bitcoin’s liquidity.
“Bitcoin’s trading volume is over $50 billion in any 24 hours — that’s huge volume,” Jajodia said.
“So, if you are buying $1 billion over a couple of days, it’s not actually moving the market that much.”
Stock Performance Faces Pressure
While the company’s Bitcoin position continues to grow in value, Strategy’s stock has struggled in recent months.
Shares fell to around $325 on Wednesday, the lowest in nearly four months, before recovering to $358 by Friday.
The decline reflects wider challenges facing Bitcoin-related equities, as treasury-focused firms see their share prices closely tied to crypto sentiment.
Still, the company has signaled it will continue adding to its Bitcoin reserves regardless of stock performance, maintaining its conviction that BTC represents the strongest long-term store of value.
Long-Term Commitment Remains Clear
Despite volatility in both crypto and equity markets, Strategy’s stance on Bitcoin remains unwavering.
The company’s purchases this month may be smaller, but they underline a strategy of consistent accumulation that has made it the largest corporate Bitcoin holder worldwide.
As Saylor signals yet another buy, Strategy is reaffirming its role at the forefront of Bitcoin adoption among institutions, even as the market weighs short-term risks.
President Donald Trump’s tariff strategy is creating turbulence across global supply chains — and at the same time, some of his administration officials are profiting from industries directly impacted by those very policies.
Recent disclosures show that top members of Trump’s team, including Commerce Secretary Howard Lutnick, have financial ties to Bitcoin and technology firms affected by tariff shifts.
Tariff delays and new measures
On Tuesday, the administration extended tariff relief on certain Chinese imports but confirmed new levies on over 400 products.
The list spans wind turbines, motorcycles, construction machinery, railcars and more.
While the tariffs are projected to generate billions in revenue, trade groups argue the measures are slowing growth and disrupting operations.
The National Foreign Trade Council (NFTC) warned the policies are “delaying growth, disrupting operations, and raising legal concerns among companies.”
Lutnick’s firm invests in Bitcoin
Filings with the Securities and Exchange Commission show Lutnick, via Cantor Fitzgerald, has been making significant investments in sectors exposed to Trump’s economic agenda.
On July 8, Lutnick received a federal waiver allowing him to engage in matters that could directly affect Cantor Fitzgerald.
That waiver has drawn scrutiny from watchdogs.
The firm has invested more than $120 million in Fidelity’s Wise Origin Bitcoin Fund and nearly $117 million in trading platform Robinhood, according to Quiver Quantitative.
It also holds stakes in Tesla, AMD and Alibaba.
Critics argue these holdings create a clear conflict of interest, given Lutnick’s influence over trade and commerce policy.
Bartlett Naylor of Public Citizen said: “When the Oxford English Dictionary next updates its conflict-of-interest definition, it’ll use Cantor Fitzgerald’s crypto ventures and the Lutnick connection as prime example.”
Other officials under scrutiny
David Sacks, Trump’s AI and crypto adviser, sold roughly $200 million in digital assets early in Trump’s second term to avoid conflict claims.
However, Sacks later received a similar waiver, allowing him to retain ties to firms seeking federal contracts.
In July, AI firm Vultron announced $22 million in funding from Sacks’ venture firm, Craft Ventures, noting its alignment with the administration’s AI strategy.
Trump has made AI development a national priority, unveiling an action plan in July that included support for semiconductor production.
Trade impacts on the economy
While Treasury Secretary Scott Bessent has described the tariff policy as “working pretty well,” industry voices remain skeptical.
The NFTC said the levies are raising raw material costs and threatening innovation in advanced manufacturing.
A Yale University Budget Lab study estimated that the tariffs will increase household costs by an average of $2,400 in 2025.
Everyday items are also being hit.
Wholesale vegetable prices were nearly 39% higher in July than a year earlier, while retailers like Home Depot report delayed home renovation projects due to tariff-driven material costs.
Despite the administration’s optimism, analysts say the long-term effects of the tariffs remain uncertain.
For now, one thing is clear: while businesses and consumers bear rising costs, some within Trump’s circle appear well-positioned to benefit.
Bitcoin faced renewed downward pressure on Wednesday as the Wall Street session opened with heavy selling.
The leading cryptocurrency slipped below $113,000, extending losses from earlier in the week and threatening a move toward fresh local lows.
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD was unable to maintain stability after a brief reclaim of the $113,000 mark.
Bid liquidity continued to thin across major exchanges.
Traders Point to Key Price Zones
According to data provider CoinGlass, $112,300 emerged as an immediate zone of interest.
Popular trader Daan Crypto Trades said Bitcoin has been testing liquidity across both sides of the range for the past six weeks.
“$BTC took out a bunch of liquidity on both sides for the past 6 weeks, as it ranged around this same price region,” he explained.
He pointed to $120,000 as the largest nearby liquidity cluster and identified $112,000 as the key support level to watch.
“These areas often act as local reversal zones and/or magnets when price gets close to them,” he added.
“Spoofy the Whale” Returns
Other analysts flagged potential manipulation in the order book.
Keith Alan, co-founder of Material Indicators, said recent movements suggest that large players may be using artificial bids to push prices lower.
Alan referred to the return of figures he dubbed “Spoofy the Whale” and the “Notorious B.I.D.” — entities known for shifting liquidity to influence market direction.
“Too soon to make any assumptions, but the influence on price direction will be the same,” he said.
“Bids moving lower invites price to move lower.”
Altcoins at Risk
Beyond Bitcoin, analysts warned of ripple effects across the altcoin market.
TheKingfisher, a well-followed commentator, said a prolonged slide in BTC could trigger disproportionate losses for smaller tokens.
“Still, we could see a gradual bleed, cascading block by block. While majors remain stable, a 5% BTC move could trigger 10–30% drops in alts,” he said.
Historical Parallels Offer Hope
Some traders see reasons for optimism despite the current decline.
Analyst Rekt Capital compared the latest correction to similar moments in prior bull cycles.
“One of the most positive things about this current pullback is that this same type of retrace took place at this same moment in the cycle in both 2017 and 2021,” he noted.
“In both 2017 and 2021, each of those retraces preceded upside to new All Time Highs.”
Focus Turns to Fed
The downturn also coincides with a key week for macroeconomic signals.
Minutes from the Federal Reserve’s July policy meeting were due to be released, and traders were awaiting Jerome Powell’s speech at Jackson Hole later in the week.
Last year, Powell used the symposium to signal policy shifts, and markets are closely watching for confirmation that interest rate cuts could be on the horizon.
With Bitcoin testing support zones and macro pressures looming, the next few days could prove decisive for market sentiment.
A senior U.S. Federal Reserve official has suggested that central bank employees should be allowed to hold small amounts of cryptocurrency to better understand the technology.
Michelle Bowman, the Fed’s Vice Chair for Supervision, made the remarks Tuesday at a blockchain event in Wyoming.
Push for practical experience
Bowman argued that firsthand exposure is crucial for staff tasked with regulating digital assets.
“We will soon be establishing a framework for supervising issuers of these assets,” she said.
“There’s no replacement for experimenting and understanding how that ownership and transfer process flows.”
Currently, Fed staff and their spouses are barred from holding crypto, ETFs tied to digital assets, or shares in crypto-related companies.
That restriction was put in place in 2022 after disclosures revealed unusual trading activity by several top officials during the early COVID-19 market turmoil.
Recruitment and expertise concerns
Bowman warned that strict prohibitions could make it harder for the Fed to attract and retain skilled examiners.
“These restrictions may be a barrier to recruiting and retaining examiners with the necessary expertise,” she said.
Allowing limited holdings, she argued, would help staff develop deeper insights into how digital assets function.
“I certainly wouldn’t trust someone to teach me to ski if they’d never put on skis,” Bowman added.
Call for regulatory flexibility
Bowman used the speech to urge regulators to adopt a more open approach toward emerging technologies.
She said regulators often display an “overly cautious mindset” and risk being left behind if they resist innovation.
“We must choose whether to embrace the change and help shape a framework that will be reliable and durable… or to stand still and allow new technology to bypass the traditional banking system altogether,” Bowman said.
“From a regulator’s perspective, the choice is clear.”
While acknowledging risks, she emphasized that many could be mitigated if regulators recognized the broader benefits of blockchain adoption.
Political backdrop
Bowman’s remarks reflect a broader shift in tone under the Trump administration.
Earlier this month, the Fed announced it would end a special supervision program for banks’ crypto activities, reversing a Biden-era initiative.
President Donald Trump has also directed banking regulators to investigate debanking claims raised by crypto firms and conservative groups.
Bowman did not specify which crypto products or how much exposure she believes staff should be permitted, but her remarks highlight growing recognition inside the Fed of the need for direct experience with digital assets.
Google has emerged as the largest shareholder of Bitcoin miner TeraWulf after securing a 14% equity stake through an expanded financial arrangement tied to AI infrastructure provider Fluidstack.
The deal centers on a 10-year colocation lease agreement between TeraWulf and Fluidstack.
To support Fluidstack’s obligations, Google agreed to increase its backstop, a financial guarantee that ensures long-term lease commitments are met.
In return, Google received warrants to purchase over 73 million shares of TeraWulf.
The new holdings place the tech giant ahead of other shareholders.
TeraWulf Confirms $3.2 Billion Guarantee
During a shareholder call, TeraWulf revealed that Google’s backstop commitment now totals $3.2 billion.
Kerri Langlais, chief strategy officer of TeraWulf, explained that the agreement gives Google a meaningful equity position.
“Google’s new equity makes it TeraWulf’s largest shareholder, providing a powerful validation from one of the world’s leading technology companies,” she said.
Langlais emphasized that the arrangement reflects “the strength of our zero-carbon infrastructure and the scale of the opportunity ahead.”
Deal Supports Lake Mariner Data Center Expansion
As part of the agreement, Fluidstack exercised an option to expand operations at TeraWulf’s Lake Mariner campus in New York.
The expansion includes a new purpose-built data center expected to go live in the second half of 2026.
Langlais clarified that Google’s $3.2 billion guarantee applies strictly to Fluidstack’s lease commitments.
“This is not a guarantee of TeraWulf’s corporate debt, nor do we have access to those funds,” she said.
“The backstop is tied exclusively to contracted AI and high-powered computing lease revenues and is unrelated to our Bitcoin mining operations.”
Mining Operations Continue, But AI Takes Priority
The deal comes as many Bitcoin miners diversify into artificial intelligence and high-performance computing (HPC) services.
The April 2024 halving reduced block rewards to 3.125 Bitcoin, cutting into profits and encouraging miners to explore other revenue streams.
Langlais noted that while TeraWulf intends to maintain its mining platform, the company sees more potential in AI workloads.
“In the near term, mining generates cash flow and provides a valuable resource to the electrical grid,” she said.
However, she added that long-term growth lies in redirecting energy capacity toward AI and HPC contracts with partners such as Fluidstack and Google.
Market Outlook for AI Integration
Industry observers see the shift as transformative for miners.
VanEck estimated in 2024 that if mining firms redirected 20% of their energy to AI and HPC by 2027, they could collectively earn an additional $13.9 billion annually over 13 years.
TeraWulf projects its deal with Fluidstack alone could generate $6.7 billion in revenue, with potential to reach $16 billion through lease extensions.
These figures underscore why miners increasingly view AI as a growth driver.
TeraWulf Shares See Volatility
News of the Google-backed agreement boosted TeraWulf’s stock (WULF) in Monday’s trading session.
Shares rose 17% to $10.57 from a prior close of $8.97 before retreating later in the day.
By the end of the session, the stock settled at $9.38, with a further decline of 1.28% in after-hours trading.
Despite the pullback, the involvement of Google has given TeraWulf new visibility and reinforced its strategy of blending Bitcoin mining with AI infrastructure.