Bitcoin’s Demand Plummets! 😱 Will $110K Survive the Macro Abyss? 🚀

by

Key Takeaways 

BTC’s overall demand has declined from over 170K BTC to 50K BTC in August. Despite the short-term macro risks, speculators have upped bets on $120K-$130K price target.  

Bitcoin’s [BTC] overall demand from ETF complex and treasury firms has dropped sharply, further accelerating the recent pullback from $124K to $112.5K. Ah, what is this but the tragic waltz of capital, dancing to the fickle tune of greed and despair? 💃🕺

According to Julio Moreno, CryptoQuant’s Head of Research, the demand slowdown was primarily behind the price retracement. A man of science, he says, yet one cannot help but wonder: does he not hear the whispers of the market’s madness? 🤯

From over 170K BTC in early August, appetite declined more than threefold to 50K BTC at press time. However, analysts also warned of extra macro headwinds in the near term. A feast of caution, it seems, as if the gods themselves chuckle at our mortal folly. 😂

Powell’s stance, liquidity concerns

Expectations for September’s potential Fed rate cuts will come under renewed scrutiny ahead of Federal Reserve Chair Jerome Powell’s speech on the 22nd of August, at the Jackson Hole Symposium. A symposium? More like a theater of economic farce, where central bankers play the role of saviors. 🎭

For his part, Wall Street analyst Tom Lee has projected that Powell will likely take a hawkish stance, but markets will rally afterwards. A prophet of optimism, this Lee, though one suspects his crystal ball is made of shattered glass. 🪞

At the same time, the potential dollar liquidity drain could also derail BTC bulls in the next few weeks, according to Coinbase’s Head of Research, David Duong. Delphi Digital also shared a similar cautious warning. Ah, the chorus of doom! Let us all weep into our coffee cups. ☕😭

Duong argued that the U.S. Treasury will likely borrow more money (about $400B) from the markets, and could sour sentiment for BTC and crypto in the short-term. But he added, 

“This explains why Bitcoin has lost trend alongside many equity names. But we think the path forward looks clearer in September.” A silver lining? Perhaps, but I smell the tang of desperation in that ‘clearer’ path. 🌫️

Will BTC’s $110K support hold?

This begs the question – Will the $110K support crack ahead of these macro pressures? A question as profound as it is mundane, like asking if a moth will resist the flame. 🔥

Well, Options traders were making a contrarian bet. Notably, Options market positioning has hit record highs, according to Glassnode. Ah, the speculators! Those modern-day Don Quixotes, tilting at windmills with their bullish lances. 🏇

In fact, speculators scooped more calls (bullish bets) targeting $120K-$130K, marking it as a key upside target. A deluge of hope, or a flood of hubris? The line is as thin as a Bitcoin block. 🧊

That said, any further downside risk could be accelerated if the BTC clears the Short-Term Holder (STH) Cost Basis of $108K. A threshold! A chasm! A mere suggestion of chaos wrapped in a number. 🧮

This level has acted as a key support and resistance level in the past. Hence, if $110K support fails, it could be the next level to watch for a potential rebound in light of the above macro pressures. A rebound? Or a funeral march? The market’s orchestra plays on. 🎻

Overall, bulls, especially on the Options side, viewed the recent pullback as an opportunity for a discounted grab for a potential rally to a new peak. Discounted grab? More like a leap into the abyss, hoping the abyss will hand you a golden ticket. 🎫

Whether they’ll withstand or succumb to macro pressures remains to be seen. A tale as old as time, yet never less absurd. 🕰️

Read More

2025-08-20 14:15