Paul Johnson Crypto markets are treading water as Bitcoin struggles near $113K, with mounting ETF outflows, macro jitters, and investor caution ahead of Powell’s Jackson Hole remarks.
Key Points
Bitcoin slips below $115K: BTC failed to sustain gains above $115,000, capped by the 50-day moving average.
ETF outflows mount: Bitcoin ETFs lost over $1 billion in three days; ether ETFs saw $500M+ withdrawn.
Macro pressure dominates: Equity market weakness and profit-taking weigh heavily on crypto sentiment.
Altcoin pullback: ETH active addresses dropped 28% since July 30; ETH, XRP, and SOL all down 6–7% this week.
Derivatives signal caution: BTC options skew hits a four-month high, showing demand for downside hedges.
Jackson Hole in focus: Powell’s comments could decide whether this pullback deepens or steadies.
Market Overview
Bitcoin’s latest stumble has left the broader crypto market cautious. Trading around $113,700 on Thursday, BTC failed to reclaim $115K, where resistance from the 50-day moving average capped a rebound attempt. Analysts argue that weakness in global equity markets, particularly tech stocks, is seeping into digital assets, compounding investor nerves.
ETF Outflows Reverse Previous Inflows
The big story of the week has been ETF outflows. According to SoSoValue, Bitcoin ETFs lost $523M on Aug. 19, $311M on Aug. 20, and $192M on Aug. 21. Meanwhile, Ether ETFs saw more than $500M withdrawn over the same period.
These consecutive outflows erased the prior week’s inflows, which were driven by BTC’s record high earlier in August. Kronos Research attributed the withdrawals to profit-taking and liquidations.
Altcoin Pressure: ETH, XRP, SOL
Ethereum has not been spared. ETH traded at $4,289, barely up 0.4% on the day but still down 7% from its peak. A steep 28% drop in active addresses since late July reflects fading retail participation, limiting near-term upside.
XRP hovered at $2.87 and Solana at $183, both down more than 6% this week. Traders say these tokens could rebound if the Fed signals a dovish stance, but without fresh inflows, rallies may be shallow.
Derivatives Flash Red Flags
The 30-day delta skew in BTC options climbed to 12% this week — its highest since April — showing strong demand for downside protection. Ruslan Lienkha, chief of markets at YouHodler, said the pressure is “driven primarily by macroeconomic factors,” rather than crypto-native catalysts.
Looking Ahead: Powell & Beyond
All eyes now turn to Jackson Hole. Powell’s remarks on Friday could determine the market’s next move:
Dovish tone: Could relieve risk assets and spark a relief rally.
Hawkish tone: May extend the slide, with BTC already down 9% from August highs.
Despite the near-term turbulence, some analysts remain bullish on the bigger picture. Bitwise predicts U.S. pension allocations could propel Bitcoin to $200K by year-end, with inflows expected as early as autumn.
For now, though, crypto markets remain in defensive mode — watching whether Powell steadies the ship or sinks it further.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards.
