Bitcoin News Today: Crypto Market Slows in August Amid Economic Uncertainty and ETF Momentum Shift

The cryptocurrency market has seen a notable cooling off in August following a robust rally driven by institutional investment in the previous two months. Bitcoin and ether experienced significant ETF inflows during June and July, with ether surging over 49% last month and bitcoin climbing to a new all-time high. This bullish momentum was supported by both steady ETF inflows and aggressive accumulation by new crypto treasury firms [1].

However, recent economic uncertainties, including weak U.S. labor data and new tariffs introduced by President Donald Trump—ranging from 10% to 41%—have triggered broader market concerns. These developments have led to a pullback in equities, increased demand for bonds, and growing speculation that crypto might face similar pressures this time around [1].

Bitcoin ETFs added approximately $6 billion in August, bringing total inflows to $55 billion since their launch, while ether ETFs now total $9.64 billion, with more than half of that accumulated in July alone. This shift in investor interest has moved focus from bitcoin to ether-based positions, reshaping the market landscape [1].

The impact of this trend is already visible in the stock market, with shares of companies like Coinbase, Galaxy Digital, and Iren rising by 27%, 45%, and 76%, respectively, over the past two months. Ether-focused firms have also seen significant gains, including Bitmine Immersion, which surged 136%, and Circle, up more than 400% [1].

Despite the slowdown in price volatility, positioning activity remains strong. Ray Youssef, CEO of the NoOnes app, noted that bitcoin remains a key risk benchmark, though it may trade in a tighter range unless a new macroeconomic catalyst emerges. He expects August to be relatively subdued in terms of price movements but “deceptively active” in terms of positioning [1].

Pauline Shangett, chief strategy officer at ChangeNOW, emphasized that bitcoin is likely to remain range-bound in the near term, with ether showing stronger momentum due to ETF demand and whale activity. She highlighted the $3,750 zone as a critical level for ether, with potential to test $4,000 if it holds, and key support levels at $3,200 to $2,900 [1].

Analysts are also keeping a close eye on the upcoming September Federal Reserve meeting, as Chair Jerome Powell’s statements often trigger short-term volatility. Youssef noted that rising geopolitical tensions could further influence market sentiment, though he sees both bitcoin and ether building underlying momentum [1].

Technical analysts, including Read Harvey of Wolfe Research, remain bullish. In a note released on Wednesday, Harvey advised taking advantage of the current consolidation period, stating that his team is holding long positions and expects a reacceleration in the coming weeks, which could lead to further outperformance of crypto against equities [1].

Sources:

[1] Crypto market cools in August after ETF-driven summer rally

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