Cryptocurrency markets experienced a volatile week as Bitcoin struggled to maintain momentum, trading at approximately $113,700 on Thursday. This represents a failure to break through the critical $115,000 threshold, which has been stymied by resistance from the 50-day moving average. The broader crypto market nudged up a mere 1% to a $3.86 trillion market cap, a modest gain analysts caution is more of a dead-cat bounce than a sign of recovery.
Bitcoin’s Uphill Battle
Bitcoin’s inability to reclaim higher ground has not gone unnoticed. According to Alex Kuptsikevich, chief market analyst at FxPro, “the technology sector in traditional financial markets remains under pressure, dampening the mood of cryptocurrency buyers.” He notes that Bitcoin’s struggles underscore the market’s fragile state. ETF flows give more color to the cautious atmosphere; data from SoSoValue reveals Bitcoin ETFs faced net outflows amounting to $523 million on August 19, followed by $311 million on Wednesday and an additional $192 million on Thursday. This trend is further explored in our recent coverage of Bitcoin, Ether ETFs post almost $1B outflows as prices slide.
In a surprising twist, Ether ETFs also saw over $500 million in outflows during this period. The retreat reverses the previous week’s inflows, which Kronos Research attributes to profit-taking and liquidations following Bitcoin’s record high earlier this August. For more insights, see Ethereum ETFs Lose $197 Million—Even Worse Than Bitcoin as Institutions Pull Back.
Altcoin Woes
Ethereum and other altcoins like XRP and Solana are feeling the pressure too. Ethereum’s on-chain metrics tell a sobering story, with active addresses plummeting by 28% since July 30. Trading at $4,289, Ethereum managed a slight 0.4% uptick on the day but is still down over 7% from recent highs. This drop in active addresses points to diminishing retail involvement, which could limit any near-term upside even if Bitcoin stabilizes.
XRP and Solana are not faring much better, with XRP slipping to $2.87 and Solana at $183. Both tokens have tumbled more than 6% over the past week, mirroring Bitcoin’s trajectory. Some traders speculate that a dovish Federal Reserve pivot might trigger short-term rebounds, but without fresh inflows, these moves might be short-lived.
Derivatives and Macroeconomic Pressure
The derivatives market is reflecting a similar sentiment, with the 30-day delta skew in Bitcoin options hitting 12% this week—a four-month high. This points to a surge in demand for downside protection. Ruslan Lienkha, chief of markets at YouHodler, notes that Bitcoin’s current weakness is mainly driven by macroeconomic factors. “Equity markets are experiencing elevated selling pressure, and this broader risk-off sentiment is spilling over into Bitcoin,” he said.
Lienkha remains uncertain whether the current positioning is just short-term hedging ahead of Federal Reserve Chair Jerome Powell’s speech or a sign of a deeper downturn. “Markets appear to be approaching the later stages of the bullish trend,” he added, leaving it uncertain if this is the start of a broader trend reversal or merely another correction on the path to a final peak.
Looking Ahead
Despite near-term bearish sentiment, some analysts are still optimistic about long-term prospects. Bitwise suggests that U.S. pension plan allocations could propel Bitcoin to $200,000 by year-end, potentially making more impact than spot ETF approvals. They even predict that the first inflows could come as early as autumn.
For now, all eyes are on Powell’s upcoming remarks at the Jackson Hole symposium. A dovish tone might ease pressure on risk assets, while any reluctance to endorse cuts could prolong the slump that has already knocked Bitcoin 9% off its highs. As the market navigates these turbulent waters, one thing remains clear: the cryptocurrency landscape is as dynamic as ever, leaving traders and analysts alike watching closely for the next move.
Source
This article is based on: What Next for ETH, XRP, SOL as Bitcoin Stalls at $113K, ETF Outflows Mount
Further Reading
Deepen your understanding with these related articles:
- Is Bitcoin’s Bull Run Losing Steam? Here’s What Crypto and Nasdaq Market Breadth Indicates
- Bitcoin Steadies at $118K as Analysts Flag Deeper Pullback Risks and Altcoin Rotation
- Solana’s SOL, XRP Dive 5% Amid Profit-Taking; Bitcoin Traders Eye Gold Divergence
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.
