Ethereum News Today: "Bitcoin Cools, Ethereum Rises: A Strategic Shift in Crypto Capital"

Bitcoin’s recent price action has shown signs of cooling, with apparent demand dropping significantly from July’s 174,000 BTC to 59,000 BTC as of now, according to data from CryptoQuant [1]. This decline is reflected in ETF inflows, which have reached their weakest levels since April [1]. The market is now categorized as being in a “bullish cooldown” phase, with $110,000 identified as a critical support level [1]. Despite this, Bitcoin edged up 1.4% on Thursday to just above $114,000, showing some resilience amid broader market shifts [1].

In contrast, ether (ETH) outperformed Bitcoin, climbing 5.8% to $4,370.73 as investors rotated capital into the asset, highlighting a strategic reallocation of funds within the crypto space [1]. The ETH/BTC ratio, a key indicator of Ethereum’s relative strength against Bitcoin, has climbed to 0.0368, its highest level in 2025 and a sign of increasing market preference for ETH [2]. This shift is further supported by the fact that weekly spot trading volumes for ETH relative to BTC reached an all-time high, with Ethereum trading nearly three times the volume of Bitcoin last week [2].

Analysts note that the move into ether is not a broad “altseason,” as it was earlier in the year, but rather a targeted shift driven by macroeconomic factors [1]. Gracie Lin, CEO of OKX Singapore, emphasized that “crypto capital is getting more selective,” with investors favoring assets like Ethereum over speculative altcoins [1]. This trend is also evident in the derivatives market, where ETH/BTC perpetual futures open interest has risen to 0.71, the highest in 14 months [2]. This increase in speculative positioning suggests stronger short-term strength for Ethereum, though long-term sustainability will depend on continued adoption and investor conviction [2].

Institutional demand for Ethereum has also been growing steadily. Investment funds now hold approximately 6.1 million ETH, a 68% increase from December 2024 levels and a 75% rise from April 2025 [2]. The fund market premium for ETH has expanded to a two-week average of 6.44%, far higher than during previous cycle peaks [2]. This accumulation reflects both financial and psychological market effects, with entities like BlackRock’s Ethereum ETF expanding exposure to the asset [2]. OnChain, a CryptoQuant analyst, suggested that once staking becomes available within ETH-based ETFs, institutional flows could increase further [2].

The broader market is also showing signs of selectivity, with profit-taking accelerating. Whale accounts realized $2 billion in gains on August 16 alone, bringing total realized profits since July to $74 billion [1]. This heavy profit-taking underscores the cautious sentiment among investors, who are now more focused on resilience and less on speculation [1]. As the market consolidates, attention turns to key macroeconomic events such as the Jackson Hole conference and U.S. inflation data, which are expected to play a pivotal role in shaping investor sentiment in the near term [1].

Source:

[1] Asia Morning Briefing: BTC Demand Cools While “Crypto Capital is Getting More Selective,” OKX’s Gracie Lin Warns (https://www.coindesk.com/markets/2025/08/21/asia-morning-briefing-btc-demand-cools-while-crypto-capital-is-getting-more-selective-okx-s-gracie-lin-warns)

[2] Ethereum vs. Bitcoin: ETH/BTC Ratio Climbs to Yearly Peak Amid Market Shift (https://www.newsbtc.com/news/ethereum/ethereum-vs-bitcoin-eth-btc-ratio-climbs-to-yearly-peak-amid-market-shift/)