Asia’s trading day dawned with caution as Bitcoin and Ethereum prices faltered, reflecting a broader bearish sentiment among traders. Bitcoin fell 1.1% to $116,263, and Ethereum dipped 3.8% to $4,322, according to CoinDesk market data. This decline comes as prediction markets and institutional reports point to a potentially rocky August for these flagship cryptocurrencies.
The Institutional-Driven Divide
In a market note to CoinDesk, Singapore-based market maker Enflux described the current crypto landscape as a tug-of-war. Institutional investors, they noted, remain bullish, buoyed by Strategy Inc.’s recent acquisition of 430 Bitcoin and expectations of further structural financing shifts. Yet, retail traders appear hesitant, potentially held back by the SEC’s continued delays on ETF approvals and a lack of interest in retail-favored tokens such as XRP and DOGE. Enflux highlighted VanEck’s reiterated year-end Bitcoin target of $180,000 as a testament to institutional confidence, even as retail participation lags. This sentiment echoes recent observations in Bitcoin’s Thin-Liquidity Bounce Raises Questions on Staying Power, where liquidity concerns were highlighted.
Solana has emerged as an outlier in this narrative. Enflux emphasized its “quiet strength,” driven by its dominance in USDC transfers and PumpFun’s share of new token issuance. This has allowed Solana to maintain its ground amidst a generally bearish outlook in the broader crypto space.
Derivatives and Market Caution
QCPreported a shift in derivatives positioning, with perpetual funding rates turning negative over the weekend—a precursor to earlier market pullbacks. Options skews now favor puts across maturities, suggesting traders are hedging against further declines. This caution is heightened by the upcoming Jackson Hole symposium, where Fed Chair Jerome Powell is expected to navigate the choppy waters of inflation and political pressure.
Despite these defensive maneuvers, there’s a sense of optimism simmering beneath the surface. Crypto search interest has soared to a four-year high, and the passage of the GENIUS Act in Washington promises regulatory clarity that could pave the way for a broader market rally.
Market Movers and Global Context
Bitcoin’s recent volatility saw it oscillate between $114,993 and $117,620 on August 18, driven by Treasury Secretary Scott Bessent’s strategic reserves announcement and the anticipation of Powell’s speech at Jackson Hole. Meanwhile, Ethereum’s struggle continued, with the cryptocurrency facing repeated resistance near record highs, despite U.S. spot ETFs attracting $3.71 billion in inflows. This mirrors the recent market movements where Solana’s SOL, XRP Dive 5% Amid Profit-Taking; Bitcoin Traders Eye Gold Divergence, highlighting the interconnectedness of crypto assets and traditional safe havens.
Globally, financial markets are on edge ahead of Powell’s comments. Gold moved within a tight range, reflecting haven demand amid geopolitical uncertainties. In Asia, stock markets were mixed, with Japan’s Nikkei 225 inching up slightly, while the Topix remained flat. Meanwhile, U.S. stocks showed signs of fatigue as major retail earnings and Fed minutes loomed.
Looking Forward
The crypto market stands at a crossroads, with institutional conviction seemingly at odds with retail reticence. The outcome of the Jackson Hole symposium could tilt the scales, offering new insights into the Fed’s approach to inflation and interest rates. Meanwhile, the anticipation surrounding regulatory developments like the GENIUS Act adds another layer of complexity to the market’s future trajectory.
As traders and analysts dissect these developments, the question remains whether the current bearish tilt will persist or if a more robust recovery is on the horizon. For now, the crypto world watches, waits, and wonders what lies ahead.
Source
This article is based on: Asia Morning Briefing: Traders Tilt Bearish on August BTC, ETH Targets as Retail Lags Institutions
Further Reading
Deepen your understanding with these related articles:
- Bitcoin $115K Bets in Demand as Downside Fear Grips Market Ahead of U.S. CPI Report
- Volatility Vanishes Across Markets as Traders Brace for Powell’s Jackson Hole Speech
- Asia Morning Briefing: Polymarket Bettors Foresee $5K ETH by End of August
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
