Bitcoin demand in August dropped sharply from over 170K BTC to just 50K BTC, causing prices to fall from $124,000 to $112,500.
Despite short-term macro pressures, many speculators are still betting on the possibility of Bitcoin rising to $120,000–$130,000; some experts caution that the $110,000 support level needs to be closely monitored amid changing monetary policies.
MAIN CONTENT
Demand from ETFs and treasuries has sharply decreased, pulling Bitcoin's price down from its recent peak.
The Fed's monetary policy and USD liquidity issues are expected to continue affecting the market in the short term.
Options speculators remain optimistic, betting that Bitcoin will reach $120,000–$130,000, with the $110,000 area as key support.
Bitcoin demand sharply decreased in August: Causes and consequences?
Overall demand for Bitcoin, particularly from ETF channels and treasury corporations, has plummeted significantly in August, pulling prices from $124,000 down to $112,500.
According to CryptoQuant data, the amount of Bitcoin purchased has decreased more than threefold, from over 170K to just 50K at present. Research lead Julio Moreno (CryptoQuant) notes that this decline in demand is the direct cause of Bitcoin's recent deep price correction.
The clear decline in demand from large institutions has directly caused Bitcoin's rapid and strong price adjustment in August.
Julio Moreno, CryptoQuant, 2025 (Source: X.com/jjcmoreno)
This declining demand trend indicates that institutional investors and large enterprises are temporarily limiting the addition of Bitcoin assets to their portfolios, reflecting cautious sentiment amid macroeconomic fluctuations and uncertainties from global monetary policy.
What macro factors are strongly impacting the Bitcoin market?
Macroeconomic factors, including the Fed's monetary policy, interest rate outlook, and USD liquidity, are significantly influencing the Bitcoin market, causing investor sentiment to become more cautious.
Specifically, investors are closely watching the Jackson Hole Conference on August 22 and the speech by Fed Chairman Jerome Powell to look for signals about the possibility of interest rate cuts in September. Nevertheless, Wall Street analyst Tom Lee predicts that Powell will maintain a 'hawkish' stance (tightening monetary policy), but the market may still recover afterwards.
Powell is likely to maintain a tough stance, but the market will regain momentum shortly thereafter.
Tom Lee, Analyst, Wall Street, 2025 (Source: Fundstrat)
Additionally, according to David Duong (Coinbase), the risk of USD liquidity withdrawal due to the U.S. Treasury's plan to borrow an additional $400 billion from the financial market is also a significant barrier to Bitcoin's short-term rally. Delphi Digital also warns that this liquidity factor could pressure investment sentiment in cryptocurrencies.
This explains why Bitcoin lost its upward trend along with many major stocks. However, the outlook for September will become clearer thanks to new policies.
David Duong, Head of Research, Coinbase, 2025 (Source: X.com/Dav1dDuong)
The combination of interest rate expectations and USD liquidity fluctuations is creating an uncertain market context, hindering demand and forcing many large institutions to adjust their short-term investment strategies.
What scenario for Bitcoin's $110,000 support level?
The $110,000 area serves as a key support level for Bitcoin against macro pressures. If this level is breached, the likelihood of a deeper price drop is very high.
What’s remarkable now is that despite the market facing many pressures, Options traders are still strongly betting on a bullish scenario with targets of $120,000–$130,000. Data from Glassnode shows that Long Options positions for this price range have reached historical records, reflecting confidence in medium-term recovery.
Options investors view the current correction as an attractive opportunity to increase their positions, aiming for a new price peak.
Glassnode, Options Report, 2025 (Source: Glassnode/X.com)
If Bitcoin's price drops below the Short-Term Holder Cost Basis of $108,000, selling trends may intensify, creating further downward momentum. This area typically serves as a strategic support-resistance level during major fluctuations in Bitcoin.
The history and role of the $110,000 support area for Bitcoin's price
The $110,000 area has repeatedly served as a solid support level for Bitcoin, helping it bounce back or acting as a resistance that hinders upward momentum. Therefore, many analysts believe that maintaining this price level is a prerequisite for recovering the upward trend before the current macro turbulence.
Conversely, if breached, selling pressure may strengthen due to a lack of support, forcing the market to seek a new 'safe haven' at lower price levels amid pressures from monetary policy, liquidity, and institutional cash flows.
Investor strategy: Don't miss signals from Options and macro factors.
Despite the market's volatile sentiment, Options speculators maintain a positive outlook on medium-term recovery. Many traders view each correction as an opportunity to accumulate Bitcoin at attractive prices, betting on the potential for a new bullish wave if prices exceed $120,000–$130,000.
However, the context heavily relies on the developments of Fed policies, USD supply capabilities, and the borrowing pressures of the U.S. government. Investors should closely monitor data from Glassnode, CryptoQuant, and macro policy signals to timely adapt and maintain discipline in risk management during periods of significant volatility.
Frequently Asked Questions
Where is the strong decline in Bitcoin demand coming from?
Demand for Bitcoin is declining mainly from institutions like ETF funds and treasury corporations, according to CryptoQuant.
Why did Bitcoin's price drop from $124,000 to $112,500?
Prices decreased due to weakened demand, influenced by cautious sentiment and macro risks, including monetary policy and liquidity.
How do the Fed and monetary policy affect Bitcoin?
The Fed's high-interest rates create pressure, and the scarcity of USD liquidity limits cash inflows into Bitcoin, causing strong price fluctuations.
How are Options speculators acting?
They still actively bet on the possibility of Bitcoin recovering, targeting the price range of $120,000–$130,000.
What role does the $110,000 price level play?
This is an important support area; if maintained, it will give Bitcoin a chance to recover; if broken, it will trigger greater selling pressure.
When will the recovery outlook be clearer?
Experts predict that in September, after the Jackson Hole event, the outlook will become clearer thanks to new signals from the Fed.
What indicators and reports should be monitored when investing in Bitcoin?
Investors should consider data from Glassnode, CryptoQuant, as well as Fed policy statements and reports to accurately capture the prevailing trend.
Source: https://tintucbitcoin.com/bitcoin-110-000-usd-tru-vung-khong/
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