TLDR
- Bitcoin price dropped to $113,646, marking a 1.2% decline in 24 hours.
- The price has fallen 5 percent in the past week and is now 8.5 percent below its all-time high.
- The Fear and Greed Index slid from 56 to 44, moving back into the Fear zone.
- Retail sntiment hit its lowest level since June as traders grew increasingly bearish.
- Whales holding 10 to 10,000 BTC added over 20,000 coins since mid-August.
Bitcoin faced renewed selling pressure as the Bitcoin price dropped to $113,646, recording a daily decline of 1.2%. The asset has now fallen 5% over the past week and is down 4% over the last 30 days. Bitcoin is currently trading 8.5% below its all-time high of $124,128 reached on August 14.
Bitcoin Price Drops as Fear Rises
Retail traders showed increased fear as the Bitcoin price moved sharply lower, pushing the Fear & Greed Index to 44. This 12-point single-day drop indicates a rapid sentiment shift back into “Fear” territory. Santiment confirmed that this is the weakest sentiment since June 22, when geopolitical risks triggered major selling.
Despite negative sentiment, derivatives trading volume rose 6.23% to $83.7 billion, signaling continued market activity. However, open interest declined 0.77% to $80.36 billion, showing reduced risk appetite. Santiment suggested that falling open interest during high volume often means traders are closing positions, not opening new ones.
😨 Retail traders have done a complete 180 after Bitcoin has failed to rally and dipped below $113K. The past 24 hours have marked the most bearish sentiment seen on social media since the June 22nd fears of war caused a cascade of panic sells.
🩸 Historically, this negative… pic.twitter.com/UYKOpWoOkn
— Santiment (@santimentfeed) August 20, 2025
“Retail traders are at their most bearish since June,” Santiment said in its August 20 update. Analysts noted that such negative sentiment has previously signaled price rebounds. Still, the current trend shows reduced confidence from smaller investors.
Whales accumulate while derivatives weaken
In contrast to retail caution, large holders added significant positions during the pullback. Wallets with 10 to 10,000 BTC accumulated 20,061 coins since mid-August, totaling 225,320 BTC since March. Santiment stated that whale accumulation has historically aligned closely with future Bitcoin price direction.
Glassnode’s August 19 report highlighted weakening market momentum as the Bitcoin price retreated from $123,000 to the $114,000 range. The relative strength index declined, and the cumulative volume delta turned negative. Sellers dominated order books despite short-lived volume rebounds.
According to Glassnode, open interest had reached extreme highs before a wave of deleveraging. Traders still paid funding to hold long positions despite falling confidence. Options activity rose, with volatility spreads widening and a positive 25-delta skew signaling stronger demand for downside protection.
ETF flows stay strong despite volatility
Institutional demand remained firm as Bitcoin exchange-traded funds attracted $880 million last week. This sustained flow suggests continued interest even as retail sentiment declined. Though on-chain transfer volume increased, user activity and fees dropped, indicating reduced retail engagement.
Glassnode reported that 96% of Bitcoin supply remains in profit. The realized profit/loss ratio reached 2.4, showing high profitability that may impact short-term direction. Future Bitcoin price movement will depend on whether institutional demand and whale support can counter weaker spot signals.
