Bitcoin Slides to $113K as Analysts Split Over Market Fragility vs. Institutional Momentum
As Asia’s trading session opened Tuesday, Bitcoin extended its recent decline, shedding 3% over the past 24 hours to trade at $113,000. Ether also dropped 5.6% to $4,100, continuing a broad-based retreat across major cryptocurrencies.
The losses come despite a series of bullish developments in the crypto sector, highlighting what many observers see as a widening gap between weak short-term price action and strengthening long-term fundamentals.
Glassnode Flags Market Fragility
According to a new report from on-chain analytics firm Glassnode, the current drawdown reflects increasing structural vulnerability. The firm notes fading spot market momentum, stretched leverage, and mounting profit-taking as key drivers behind the recent weakness.
Even as U.S.-listed spot bitcoin ETFs attracted close to $900 million in inflows last week, Glassnode warns that conviction remains too low to support prices. Without fresh buying pressure in the spot market, they say the ecosystem remains exposed to deeper deleveraging.
Enflux Highlights Underlying Strength
Singapore-based market maker Enflux offered a contrasting perspective, emphasizing that institutional infrastructure is strengthening despite short-term volatility.
In a note shared with CoinDesk, Enflux argued that recent developments are being overlooked by traders too focused on price charts. They pointed to:
- Google becoming the largest shareholder in bitcoin miner TeraWulf
- Wyoming’s rollout of a state-backed stablecoin
- Tether’s hire of a former White House crypto advisor
“These are not just headlines,” the firm wrote. “They’re evidence of realignment toward a more mature, regulated, and institutionally-driven market.”
Diverging Narratives Reflect a Maturing Market
The contrasting views from Glassnode and Enflux reflect a broader split in market sentiment. One camp sees fragility and caution as momentum fades. The other views this moment as the beginning of a structural shift — one where institutional adoption is gaining momentum beneath the surface.
Prices may not yet reflect this evolution, but market architecture continues to solidify.
Market Movers
- Bitcoin (BTC): Down 3.2% to $113,000 as traders brace for the Fed’s upcoming FOMC minutes and Powell’s Jackson Hole speech on Friday.
- Ether (ETH): Fell 3.5% to below $4,200 amid rising uncertainty around a potential September rate cut.
- Gold & Silver: Gold edged up to $3,384.70, silver to $38.115 in quiet trading ahead of Powell’s address.
- Nikkei 225: Dropped 1.14% to 43,050.89, pulling back from recent highs as investors weigh U.S. trade risks.
- S&P 500 Futures: Flat overnight, with Dow steady and Nasdaq 100 down 0.2% ahead of major earnings and Fed updates.
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