Bitcoin News Today: Bitcoin's Max Pain Push and Ethereum's Volume Surge Spark Flippening Fears

Bitcoin's market dominance climbed to a two-week high of nearly 59%, signaling renewed inflows into the cryptocurrency. The price of Bitcoin reached $113,000, its highest level since August 28, marking the first higher high since the mid-August peak of $124,000. This upward movement was supported by the max pain theory, which posits that as options expiry nears, prices gravitate toward levels that inflict the most loss on option buyers. On Deribit, $3.28 billion in Bitcoin options with max pain at $112,000 expired, aligning with the price movement almost perfectly for the first time in the market. The price recovery was also observed ahead of the U.S. jobs report, a potential catalyst for further movements [1].

Ethereum’s performance over the same period has introduced a notable shift in market dynamics. For the first time in seven years, Ethereum overtook Bitcoin in spot trading volume, with $480 billion in August compared to Bitcoin’s $401 billion. Institutional investors have increasingly favored Ethereum, with corporate treasuries disclosing substantial ETH purchases and consistent inflows into Ethereum-linked funds. This trend has contributed to Ethereum's outperformance in year-to-date returns, rekindling the debate about the possibility of a "flippening" where Ethereum could surpass Bitcoin in dominance [2].

The broader crypto market, however, has shown signs of caution and risk aversion. The Crypto Fear & Greed Index dropped to 44, entering "Fear" territory over the weekend. Traders have shifted focus toward major cryptocurrencies like Bitcoin, Ethereum, and XRP, retreating from obscure altcoins. Santiment noted that this behavior reflects a more cautious sentiment, with analysts suggesting altcoin season may not return until later in the year, contingent on the launch of more crypto ETFs. Bitcoin has declined by 5.38% over the past month, while Ethereum has gained 9.44%. Despite this, the altcoin landscape remains under pressure, with isolated pockets of strength observed [3].

Bitcoin’s technical pattern appears mixed, with its near-term trajectory remaining in flux. Analysts have noted undecisive price action and potential downward pressure if it breaks below key levels. Some market participants argue that the current conditions are distinct from previous cycles, with altcoins being undervalued relative to historical benchmarks. These views highlight the uncertainty among traders and analysts as to whether traditional patterns will hold. The Altcoin Season Index, at 56, suggests a tentative altcoin season, but the broader market's uncertain sentiment and fading volumes indicate that major shifts may be delayed [3].

Market participants are keeping a close eye on macroeconomic developments, particularly the Federal Reserve’s policy outlook. The anticipation of a potential rate cut in September has not yet translated into a sustained market upturn. While the crypto market has shown resilience and pockets of strength, the overall trend remains cautious, with traders and investors adjusting their positions accordingly. The interplay between macroeconomic signals, regulatory developments, and technical indicators will likely shape the market’s direction in the coming months. As the market navigates this complex environment, the balance between risk and reward will continue to be a central theme for investors and traders alike [1].

Source:

[1] BTC Nears $113K as Dominance Rises to 59%, A Two (https://www.coindesk.com/markets/2025/09/05/bitcoin-hits-usd113k-as-btc-dominance-approaches-two-week-high-of-59)

[2] Bitcoin vs Ethereum - Is the 'flippening' on after ETH's spot (https://ambcrypto.com/bitcoin-vs-ethereum-is-the-flippening-on-after-eths-spot-volume-overtakes-btcs/)

[3] Crypto Market Slides Into Fear as Traders Pull Back From (https://finance.yahoo.com/news/crypto-market-slides-fear-traders-095827611.html)