Bitcoin News Today: Bitcoin and Ethereum fall 1.1% and 3.8% as traders turn bearish on short-term targets

Bitcoin and Ethereum prices dipped on August 18, with BTC down 1.1% and ETH down 3.8% in the last 24 hours, as traders turned bearish on short-term price targets for the month [1]. Prediction markets reflected this bearish sentiment, with traders favoring scenarios where BTC closes below $111,000 with a 34% probability and ETH settling near $4,800 at a 43% chance, according to Polymarket data [1]. Despite the weakening price action, institutional support for the two leading cryptocurrencies remains firm, with VanEck recently reiterating a $180,000 year-end price target for BTC [1].

Enflux, a Singapore-based market maker, highlighted the diverging forces shaping the market: strong institutional conviction versus limited retail participation [1]. The firm pointed to structural financing shifts and continued institutional buying, such as Strategy Inc.’s 430 BTC purchase, as signs of sustained long-term confidence [1]. However, retail-driven narratives, including XRP and DOGE, have been constrained by the SEC’s delayed decisions on ETF approvals [1].

Derivatives positioning also indicated caution. QCP reported that perpetual funding rates turned negative over the weekend, a pattern that has historically preceded market pullbacks. Meanwhile, options skews now favor put options across all maturities, suggesting increased bearish positioning [1]. These trends have created a market environment that appears structurally supported at the top but tactically defensive as the industry anticipates Fed Chair Jerome Powell’s comments at the Jackson Hole symposium [1].

The CD20, an index tracking the 20 largest cryptocurrencies, fell 2.4% on the day, reflecting broader market weakness. Bitcoin traded around $116,263, while Ethereum hovered near $4,322 [1]. Despite a $3.71 billion inflow into U.S. spot ETFs, retail selling pressure continued to weigh on ETH, which fell to $4,330.61 on August 18 amid high volatility and repeated resistance near record highs [1].

Market makers remain watchful as the broader macroeconomic environment tightens. With 10-year Treasury yields at a four-year high and the GENIUS Act progressing through Washington, the foundation for a broader crypto rally may still be forming. For now, however, price action and prediction markets suggest that conviction remains concentrated among institutional players, while flows remain selective and bearish in the near term [1].

Source: [1] Asia Morning Briefing: Traders Tilt Bearish on August BTC, ETH Targets as Retail Lags Institutions (https://www.coindesk.com/markets/2025/08/19/asia-morning-briefing-traders-tilt-bearish-on-august-btc-eth-targets-as-retail-lags-institutions)