Bitcoin Price Slips as Institutional Interest Fades: What’s Next for BTC?

The crypto market has recorded a massive selloff today, with its market cap falling more than 1.6% to $3.97 trillion.

Notably, the selloff comes amid a retreat in both altcoins and Bitcoin price, with BTC resting near $117k during writing.

According to market experts, the selloff in BTC could be due to the waning risk-bet appetite of institutions towards the asset.

For context, the US Spot Bitcoin ETF has ended the week on a low note, breaking its seven-day inflow streak.

However, despite the declining value, a flurry of experts have remained optimistic on the long-term trajectory of the flagship crypto.

Besides, they have cited the ongoing retreat as a healthy trading scenario that might help it for a potential breakout ahead.

Having said that, here we explore some of the top reasons behind the recent dip. Also, we would see what might await the Bitcoin price in the near future.

Bitcoin Price Slips: Here’s Why

BTC price today has slipped nearly 1.3% and traded at $117,517, amid a broader crypto market selloff.

Besides, the trading volume over the last 24 hours has also plunged about 27% to $65 billion, indicating a waning interest from market participants.

Further evidencing the fact, the Bitcoin Futures Open Interest slipped around 0.5% today, with Binance recording the highest plunge by 2.28% to $15.04 billion.

This also suggests that the investors are staying on the sidelines amid soaring market uncertainties.

For context, the CME FedWatch Tool showed that the market is betting heavily towards a potential Fed Rate Cut in September.

However, the latest US PPI inflation data has dampened sentiment, coming in hotter than the Wall Street expectations.

This has triggered a widespread selloff in the financial sector, let alone the crypto market and Bitcoin price.

On the other hand, the BTC institutional interest, which has so far led the rally in the crypto market, appears to be fading.

Meanwhile, according to Farside Investors data, the US Spot Bitcoin ETF has recorded an outflow of $14 million on August 15.

This marks an end to its seven-day inflow streak, with this week alone, the investment instrument’s total inflow was recorded at $547.1 million.

This negative fund flow has sparked concerns over a declining interest from institutions.

However, the latest buying trend from corporations and retail traders has shrugged off concerns over the short-term woes.

What Lies Ahead for BTC Price?

The market pundits have cited the current pullback as a healthy development, sparking traders’ enthusiasm.

For context, in a recent X post, renowned analyst Michael van de Poppe noted that “Corrections do happen.”

According to him, the market needs such a correction to continue its upward momentum. He has also shared a Bitcoin price chart, highlighting key levels to watch for market participants.

For context, Poppe noted that $116.81k marks a key support for Bitcoin price. If BTC closes above $117.9k, holding the $116.8k support, it could target the $119.5k level ahead.

In addition, analyst Crypto Rover said that this is the “WRONG moment” to turn bearish on Bitcoin. This also reflects his confidence in the asset despite the ongoing negative momentum.

He has predicted a potential surge to over $200k by the end of 2025, further reflecting his bullish sentiment on the flagship crypto.

However, despite that, traders should tread cautiously amid the market uncertainties. The geopolitical tensions and macroeconomic woes might continue to weigh on the investors’ sentiment in the near future.