Bitcoin News Today: Crypto and AI Markets Tumble Amid Macro Uncertainty and Fed Jitters

Late August 2025 brought renewed volatility to cryptocurrency and AI equity markets, as investors reacted to macroeconomic uncertainty ahead of the Federal Reserve's policy meeting minutes. Bitcoin (BTC) and Ethereum (ETH) both faced significant outflows, with ETH ETFs losing $678 million over three days. BTC was further impacted by a $400 billion drain from reverse-repo strategies, highlighting a broader shift away from leveraged positions in the digital asset space [1].

The bearish momentum in crypto was reflected in the equity market, where AI stocks faltered. The S&P 500 endured one of its worst Septembers in years, with shares dropping over 2% at the start of the month. Analysts noted growing concerns about inflated valuations in AI-related equities, as rapid gains in the sector earlier in the year prompted investors to reassess risk levels and take profits ahead of potential macroeconomic shifts [2].

Despite the near-term sell-off, blockchain innovation continued to progress. A notable development came from OpenLedger, which partnered with Trust Wallet to improve decentralized data and model storage, signaling the increasing convergence of AI and blockchain technologies [3]. This collaboration suggests ongoing efforts to integrate AI capabilities into decentralized infrastructure, potentially enhancing both data efficiency and model accessibility.

On the institutional front, Wyoming became the first U.S. state to introduce a stablecoin framework, signaling growing regulatory support for digital assets in financial stability and debt management [1]. Bullish, a digital asset exchange, also completed a $1.15 billion IPO using stablecoins, showcasing the increasing role of these tokens in traditional finance.

Market participants remain closely watching the Fed's policy direction, with the central bank's stance on inflation and interest rates expected to play a decisive role in near-term investor behavior. The uncertainty has prompted many to reduce exposure to high-risk assets until more clarity emerges.

While crypto and AI stocks face pressure, continued institutional adoption and technological innovation suggest a long-term growth trajectory for the digital asset industry. Investors are balancing caution with a cautious eye on strategic developments that could reshape the market landscape.