Bitcoin holds steady near key levels as volatility returns fast.
Markets have seen widespread uncertainty following Bitcoin’s hesitation at the $115K threshold. Investors are watching closely as the performance of altcoins like ETH, XRP, and SOL is shaped by shifting market dynamics.
In recent trading, Bitcoin hovered around $113,700, still struggling to push higher after encountering resistance at its 50-day moving average. This resistance quickly reversed a short-lived rise above $115,000, signaling a possibly fragile market. Other cryptocurrencies have not fared much better, with the overall market capitalization edging up to just $3.86 trillion, a meager one percent increase that many experts view as a pause, not a new rally.
ETF investment trends further illustrate caution among institutional players, with outflows from Bitcoin-related ETFs totaling hundreds of millions in recent days. Specifically, spot Bitcoin ETFs saw almost $523 million withdrawn on Monday, followed by additional large outflows the next two days. Ether ETFs experienced similar pressure, registering over $500 million in outflows within the same short span.
The reversal in ETF activity comes after a brief period of optimism, which had spurred inflows the previous week. Some of this pullback is attributed to profit-taking after Bitcoin’s peak earlier in August, as well as broader market liquidations. This ebb in capital flows echoes in sentiment, with traders highlighting a general risk-off mood. The traditional tech sector’s recent struggles have carried over to digital assets, compounding the sense of caution.
News from regulatory circles adds another layer of complexity. The Securities and Exchange Commission has initiated a review involving Alt5 Sigma’s recent $1.5 billion deal with World Liberty Financial, a group reportedly linked to former President Donald Trump. Market participants are closely watching for any broader implications that could unsettle the crypto landscape.
On-chain data for Ethereum underscores the market’s cooling. The number of active addresses on the Ethereum network has dropped by 28 percent since July 30, indicating a retreat from retail users. This softening participation has limited price progress: Ether was last seen at $4,289, posting only a slim rise of 0.4 percent for the day and remaining over 7 percent below its earlier highs. Analysts warn that unless engagement picks back up, ETH may struggle to build momentum even if the broader market steadies.
Ethereum is not alone in mirroring Bitcoin’s cautious tone. XRP slipped to $2.87 while Solana settled near $183, each down more than 6 percent over the past week. With similar declines among top assets, the broader picture remains one of synchronized hesitation. Some traders suggest that a shift in US Federal Reserve policy toward more supportive measures could spark temporary rebounds, but without renewed capital inflows, any recovery may be fleeting.
Derivatives markets reveal a mounting desire for protection. This week, the 30-day delta skew for Bitcoin options hit 12 percent, a level last seen four months ago, and a strong signal that traders are increasingly bracing against further declines. This uptick in hedging activity highlights prevailing uncertainty as macroeconomic variables weigh heavily on digital asset pricing.
Ruslan Lienkha, market chief at a leading trading platform, observes that the pressure on Bitcoin is currently tied more to the global financial backdrop than to any internal crypto-specific event. Equities have also faced sharp selling, suggesting that investors are broadly shifting away from risk.
Traders remain split on what happens next. For now, they are squarely focused on Jackson Hole, where Federal Reserve Chair Jerome Powell is expected to share key guidance on monetary policy. Any sign of a more dovish central bank could relieve some of the strain on digital and traditional risk assets alike. On the other hand, hesitancy to discuss potential rate cuts may intensify the current market slump, which has already driven Bitcoin down by about 9 percent from its latest high.
Despite recent gloom, some see hopeful signs on the horizon. Bitwise has projected that US pension funds and similar institutions might start allocating funds to Bitcoin, fueling speculation that prices could climb to $200,000 within months. The initial wave of these investments, according to Bitwise, could arrive as soon as autumn, possibly creating a new catalyst that rivals spot ETF approvals in driving market growth.
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Conclusion
The cryptocurrency landscape finds itself at a crossroads after Bitcoin’s recent stalling and a sequence of notable ETF outflows. Altcoins such as Ethereum, XRP, and Solana continue to mirror broader hesitation, shaped by both macroeconomic factors and reduced retail interest.
While near-term sentiment remains cautious, opportunities for upside persist with possible shifts in monetary policy and growing interest from institutional investors on the horizon. As traders weigh uncertainty and hope, the coming weeks are likely to define the sector’s next decisive move.
Ewan’s fascination with cryptocurrency started through his curiosity about innovative technologies reshaping the financial world. Over the past four years, he has specialized in cloud mining and crypto asset management, diving deep into mining contracts, profitability analysis, and emerging trends. Ewan is dedicated to helping readers understand the technical and economic aspects of crypto mining, making complex information accessible and actionable.
