Daily Crypto Signals: Bitcoin Slides Below $115K, Ethereum Faces Record Short Interest
Bitcoin fell to $113,300 with $300 million in liquidations as institutional spot volume surged past $6 billion, while Ethereum faced
Quick overview
- Bitcoin fell to $113,300 with $300 million in liquidations as institutional spot volume surged past $6 billion.
- Ethereum faced historic short positioning, despite a significant $16.3 million whale long bet targeting a bounce to $4,300.
- Senator Tim Scott is optimistic about bipartisan support for crypto legislation, while Tether strengthens its strategy by hiring former White House crypto director Bo Hines.
- Market volatility continues as traders remain cautious about potential challenges in September, despite signs of stabilization.
Bitcoin BTC/USD fell to $113,300 with $300 million in liquidations as institutional spot volume surged past $6 billion, while Ethereum ETH/USD faced historic short positioning despite a massive $16.3 million whale long bet targeting a bounce to $4,300. Political developments see Senator Tim Scott expecting bipartisan support for crypto legislation and former White House crypto director Bo Hines joining Tether as strategic adviser.
Crypto Market Developments
This week, the cryptocurrency market was very volatile. Bitcoin and Ethereum both fell in value as institutional activity and political maneuvering increased. Trading volumes on major exchanges shot up, with Binance BTC spot volume going over $6 billion on August 18, which was one of the biggest surges this month. This rise in activity happened at the same time as Bitcoin broke through the psychological $115,000 support barrier, causing over $300 million in liquidations.
Key events in politics are changing the rules that govern the business world. Tim Scott, the chair of the Senate Banking Committee, was hopeful that both parties would support the Digital Asset Market Clarity (CLARITY) Act. He pointed to the success of the GENIUS Act, which got 18 Democratic votes, as a reason for his optimism. At the same time, Tether, a major stablecoin company, made its U.S. strategy stronger by hiring Bo Hines, the former Executive Director of the White House Crypto Council, as a strategic adviser. This shows that the company wants to grow quickly in the world’s largest economy.
There is also increasing institutional interest in the market through unusual avenues. Billionaire Chamath Palihapitiya has filed for a $250 million SPAC that would focus on decentralized finance and AI. Traders are still wary of September, though, because analysts are warning that things could get “brutal” in the future, even though there are signs that things are getting better.
Bitcoin Faces More Weakness Under $115,000
Bitcoin’s recent drop below $115,000 has caused a lot of worry in the market, but underlying measures imply that the selloff may be creating chances to buy more. The fact that Binance’s spot trading volume rose to almost $6 billion during the price drop shows that institutional investors and big traders are getting more involved in the market to take advantage of the volatility. In the past, this trend has shown that traders bought BTC at lower levels, which might be the start of a price rise.
The dip in Binance Whale-to-Exchange Flow, which went from $6.4 billion to $5 billion, supports this accumulation theory. This means that large holder deposits have gone down by $1.4 billion in the past week. This drop means that fewer whales are sending Bitcoin to exchanges to sell, which is usually seen as a good sign. The fact that spot volume is rising while prices are falling and whale deposits are falling suggests that the market is starting to stabilize. If accumulation stays at these levels, Bitcoin could be ready to challenge higher resistance levels again.
From a macroeconomic point of view, Bitcoin is in a complicated situation where inflation might help the cryptocurrency no matter what the Federal Reserve decides to do. Inflation seems unavoidable because of continuous trade policies and fiscal growth, whether the Fed gives in to political pressure for dramatic rate cuts or sticks with its existing policy. In a quick-cut climate, Bitcoin would probably go up with other risky assets as a way to protect against inflation. In a more methodical environment, Bitcoin would slowly become more appealing as a way to protect against systemic risk and a weak currency.
Technical research shows that Bitcoin is still following its weekly trendline pattern, and some analysts think it might reach $130,000 if the trend stays the same. Experts say that the cryptocurrency will have to go through what could be a tough September before it can make any real progress in the fourth quarter of 2025. The next week or two are very important. There will be more selling pressure before there are signs that the trend might change.
Could Ethereum Price Dip Under $4,000?
Ethereum is going through one of its most important times right now since there are so many short positions that are putting pressure on the cryptocurrency. There are now 18,438 net leveraged shorts, which is the most bearish bet in Ethereum’s history. Traders are placing aggressive bets on the downside after ETH fell from the $4,790 barrier. This record short interest is putting pressure on the market in the short term, but it has also created the circumstances for a possible huge short squeeze if Ethereum can rise from its current level of roughly $4,284.
The negative stance is happening at the same time as a lot of whales are doing the opposite, as shown by a huge $16.35 million long position that opened at $4,229.83 with 25x leverage. This brave bet shows that the person is sure that the recent drop is a chance to buy, since the position is currently making a small profit and is set up to benefit from a move toward the $4,300-$4,360 liquidation cluster. This bullish thesis is backed up by technical analysis, which shows that Ethereum is staying above its 20-day exponential moving average and the bottom limit of a falling wedge formation that is forming. This is a typical setup for a bullish reversal.
The $4,200-$4,250 level, which is where the 100-day moving average is, is a key test for Ethereum’s short-term direction. If this level holds, it might start the short squeeze that everyone is talking about. This would force bearish positions to close at higher prices and speed up any recovery toward the $4,750 goal, which is almost 13% higher than where we are now. The liquidation heatmap reveals that there are a lot of short positions above $4,300, which makes a “liquidity magnet” that could pull prices up even if there isn’t a big breakout.
Ethereum is currently going through what observers call one of the most clear weekly retests in years. It has turned the $3,900-$4,000 resistance zone into support. This technical change, along with the continued use of ETFs and treasury strategies by institutions, keeps the optimistic fundamental backdrop. If ETH doesn’t maintain the $4,200 support, it might drop even more below $4,000 or the 200-day moving average around $3,920. This makes the current levels very essential for figuring out what Ethereum’s next big move will be.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save