TLDR
- Bitcoin rebounds to $113,000 after hitting seven-week lows below $109,000 this week
- Retail traders buy $101.253 million worth while institutions sell $7.5 billion in futures
- Fed rate cut probability reaches 85% for September, supporting crypto prices
- Trump fires Fed Governor Lisa Cook over mortgage fraud allegations
- Bitcoin down 10% from August record high above $124,000
Bitcoin price has recovered to approximately $113,000 on Thursday following a sharp decline that pushed the cryptocurrency to seven-week lows. The digital asset dropped below $109,000 earlier this week but has gained ground over the past two trading sessions.
The recovery comes despite Bitcoin falling more than 10% from its August record high above $124,000. Trading data reveals a split between different investor groups during the recent volatility.
Retail investors have been actively purchasing Bitcoin during the price decline. Traders with positions between $1,000 and $10,000 showed net buying behavior throughout the weekend correction period. Coinbase spot market data indicates retail buying reached $101.253 million during the selloff.
Institutional Investors Drive Selling Pressure
Large-scale investors are moving in the opposite direction. Whale and institutional traders with positions between $1 million and $10 million have been net sellers during the same timeframe. Perpetual futures markets saw approximately $7.5 billion in selling from this investor cohort.
The divergent trading patterns explain why Bitcoin remains in a short-term downtrend despite retail support. Institutional selling pressure has prevented a stronger price recovery even as smaller investors view current levels as attractive entry points.
Liquidation data shows concentrations of trading positions at key price levels. Bid clusters exist between $111,000 and $110,000 from the weekend activity. Another grouping appears near $104,000, though market conditions suggest a drop to those levels appears less probable.
Bitcoin Price Prediction
Cryptocurrency markets are responding to shifting Federal Reserve expectations. Traders now assign an 85% probability to a quarter-point interest rate reduction in September. Lower rates typically benefit Bitcoin by reducing returns on traditional investments.
Political developments are also influencing market sentiment. President Trump announced the dismissal of Federal Reserve Governor Lisa Cook on Tuesday. The firing relates to allegations of mortgage fraud connected to 2021 loan documents.
Cook denies the allegations and her legal team plans to challenge the dismissal. They argue the action violates Federal Reserve Act provisions and lacks proper legal foundation.
The personal consumption expenditures price index releases Friday. This inflation measure serves as the Federal Reserve’s preferred gauge and will influence September policy decisions.
Current trading shows Bitcoin up 1.7% to $112,869.5 as of early Thursday. The cryptocurrency continues working to establish distance from this week’s lows while managing ongoing pressure from institutional selling.
