Bitcoin News Today: Bitcoin and Ethereum Face Signs of Market Cooling Amid Bearish On-Chain Indicators

Bitcoin and Ethereum have reached notable price levels, but growing on-chain data from analytics firm Santiment is highlighting signs of a potential market cooling phase. The firm has identified a “bearish divergence” in Bitcoin’s trading volume since its July peak, alongside a decline in daily active addresses and network growth. These indicators raise concerns about the sustainability of current price levels [1]. Santiment’s MVRV (Market Value to Realized Value) metrics further suggest potential downward pressure, with Bitcoin’s long-term MVRV at 21%, indicating limited upside for the asset [1].

The situation for Ethereum appears even more precarious. Its 90-day and 365-day MVRV ratios stand at 40% and 57%, respectively — levels that Santiment associates with a higher risk of stronger corrections. The rising ETH/BTC price ratio also suggests Ethereum may be outpacing Bitcoin in relative performance [2]. Despite this, Ethereum’s recent on-chain volume has surged to $13 billion, highlighting its expanding use cases and network activity [7].

Santiment also observed a behavioral shift among large and small investors. Bitcoin “whales” holding 10 to 10,000 BTC have been steadily accumulating since March without selling, signaling long-term confidence. At the same time, retail investors continue to buy, though analysts caution that such synchronized buying activity often precedes a market consolidation or correction [1]. Veteran trader Tim Ennis has echoed these concerns, noting that Bitcoin may have already reached its cycle top and warning of an early cooling phase following a drop below $117,500 [6].

Social media sentiment also reflects caution. Despite recent price pullbacks, “buy the dip” chatter has surged, which Santiment views as a contrarian indicator of over-optimism. Analysts argue that slowing fundamentals, high MVRV ratios, and euphoric on-chain sentiment should encourage investors to approach the current rally with caution [1].

Looking ahead, the market is closely watching macroeconomic developments, particularly the Federal Reserve’s monetary policy and inflation figures, which have tempered expectations for aggressive rate cuts and added uncertainty to the crypto space [10]. While Ethereum remains above the $4,400 level and approaches its 2021 high of $4,792, the broader market appears to be entering a period of consolidation [7].

Investors are advised to monitor on-chain metrics, whale behavior, and macroeconomic indicators to assess the likelihood of a sustained bullish trend or a more extended correction. As the crypto market continues to evolve, the coming weeks will be crucial in determining whether Bitcoin and Ethereum can maintain their momentum.

Sources:

[1] Coindoo - https://coindoo.com/market/bitcoin-and-ethereum-price-outlook-santiment-warns-of-market-cooling-ahead/

[2] AInvest - https://www.ainvest.com/news/ethereum-news-today-ethereum-surpasses-bitcoin-sentiment-cools-ethbtc-ratio-rises-33-2508/

[3] CryptoDnes.bg - https://cryptodnes.bg/en/ethereum-could-outperform-bitcoin-as-crowd-sentiment-diverges-santiment-data-shows/

[6] Coindoo - https://coindoo.com/bitcoins-cycle-top-may-already-be-in-warns-veteran-trader/

[7] Mitrade - https://www.mitrade.com/insights/news/live-news/article-3-1045304-20250816

[10] PU - https://www.puprime.com/crypto-rally-stalls-as-traders-eye-fed-outlook-geopolitical-risks/