Bitcoin has fallen below $116,000 in Monday's trading, marking a sharp reversal from last week's record above $124,000. The decline follows renewed concerns about inflation in the U.S. and uncertainties surrounding Federal Reserve policy, which has reduced risk appetite in global markets. At the time of writing, the price is close to $115,300, maintaining a fragile support around $115,000. Analysts warn that a break below this level could push prices down to $112,500, but holding this level could pave the way for a recovery towards $120,000 and beyond. Data from short-term holders suggests that selling pressure remains limited. The Net Unrealized Profit/Loss ratio is just 0.07, well below the saturation threshold of 0.25 that historically signals profit-taking and potential corrections.
As markets remain cautious, Tokyo-based Metaplanet Inc. has intensified its Bitcoin strategy. The company announced the purchase of 775 BTC at an average price of ¥17,720,023 per coin (around $122,000), raising its total holdings to 18,888 BTC. Metaplanet's aggressive accumulation demonstrates growing institutional conviction in Bitcoin as a treasury asset. Despite short-term volatility, the company has shown impressive yield metrics, including a gain of 129.4% from April to June 2025 and gains of 29.3% from July to mid-August. Such moves reflect how companies continue to use declines as entry points, reinforcing the narrative of Bitcoin as a long-term hedge against inflation and currency devaluation.
Market observers are divided on whether this correction is a preparation for the next rally or a warning of a deeper decline. If Bitcoin can reclaim $117,261 as support, momentum may accelerate towards $127,000, the first major resistance identified by on-chain cost basis models. Additionally, the +2σ band around $144,000 represents the zone where euphoria typically peaks before corrections arise. For now, Bitcoin's fate depends on maintaining the $115,000 support. With institutional buying, ETF inflows, and corporate treasury adoption showing resilience, many see the current retracement less as a peak and more as an opportunity for strategic accumulation.