- Bitcoin has dropped to a three-week low of $114K following its July peak, as traders reduce exposure and ETF demand weakens.
- Investor interest is fading, with over $800 million in liquidations and Coinbase stock dropping 17% after weak earnings.
Bitcoin has slipped to $114,000, marking its lowest point in three weeks following a record-breaking rally in July. As institutional demand cools and traders step back, concerns are rising over whether the recent gains can hold.
From Peak to Pullback
The flagship cryptocurrency soared to an all-time high of $123,200 on July 14 after the US passed its first crypto regulatory guidelines under Donald Trump. The milestone sparked a surge in optimism, pushing the total crypto market cap past $4 trillion. Bitcoin’s rally was matched by strong inflows into exchange-traded funds (ETFs), with $6 billion in net inflows last month—making it the third-best month for Bitcoin ETFs on record. Ether also saw its best month ever with $5.4 billion in inflows.
However, that wave of enthusiasm is now showing signs of reversal. ETF demand has weakened sharply, and long positions are rapidly unwinding. Data from Coinglass reveals that more than $800 million in long crypto positions were liquidated last Saturday. Ether led with $251 million in liquidations, while Bitcoin followed with $200 million.
Bitcoin and Institutional Appetite Fades
Signs of cooling investor interest are also emerging from Coinbase, where the Coinbase premium—a measure of US investor demand—has turned negative. In addition, open interest in CME Bitcoin futures has dropped 13% since mid-July, while Ether futures saw an even steeper decline of 21%.
Coinbase itself is feeling the chill. The platform’s stock plummeted 17% after reporting weaker-than-expected Q2 earnings, further highlighting the impact of falling crypto market volatility.
Outlook: A Pause or a Warning?
Whether Bitcoin’s dip to $114K is a healthy correction or the beginning of deeper losses remains uncertain. Institutional activity drove the July rally, but investors are now reassessing their positions as market sentiment shifts.
As ETF flows stabilize and regulatory clarity grows, the coming weeks could define whether Bitcoin holds the $114K level or slips further in search of new support.
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