Bitcoin News Today: Investor Exodus to Ethereum Puzzles as Bitcoin Bleeds $1.43B

Bitcoin may face downward pressure following $1.43 billion in outflows from digital asset investment products since March, according to CoinShares data, as investors reacted to renewed uncertainty around Federal Reserve monetary policy. The largest cryptocurrency has recorded $1 billion in weekly outflows, with inflows over the past month amounting to just 11% of its total assets under management, compared to 26% for Ethereum. This divergence highlights a shift in investor sentiment, with Ethereum demonstrating relative resilience amid broader risk-off behavior [7].

Bitcoin’s price dropped to $109,400 on August 26, marking its lowest level in more than six weeks. This correction followed a significant $11 billion sell-off from a dormant whale that had been inactive for five years, with the proceeds largely flowing into Ether spot and futures on decentralized exchange Hyperliquid. Despite the price decline, demand for Bitcoin futures surged to an all-time high, with open interest climbing to 762,700 BTC—a 13% increase from two weeks prior. This surge in leveraged positions indicates sustained trader engagement, though it also raises the risk of cascading liquidations if prices fall further below the $110,000 threshold [1].

The Bitcoin futures annualized premium currently stands at a neutral 8%, up from 6% the previous week. Notably, the metric has not remained above the 10% neutral threshold for over six months, suggesting that even the recent all-time high of $124,176 failed to generate broad bullish sentiment. Meanwhile, the perpetual futures funding rate returned to 11%, a level consistent with neutral market conditions. However, the muted sentiment can partly be attributed to $1.2 billion in net outflows from U.S.-listed spot Bitcoin ETFs between August 15 and August 22 [1].

Ethereum, in contrast, has shown more robust performance. The second-largest cryptocurrency recently broke its previous all-time high, reaching $4,945.60 on Sunday. Institutional adoption, particularly from digital asset treasury companies and ether ETFs, has driven this rally. Ether’s long-term holder net unrealized profit/loss (NUPL) indicator has entered the “belief” phase, a historical precursor to significant price increases. Additionally, the market value to realized value (MVRV) ratio of 2.08 indicates that Ethereum remains relatively undervalued compared to its 2021 and 2017 peaks [4].

Ethereum’s resilience is also reflected in its performance relative to assets under management. CoinShares reported that inflows represented 26% of Ethereum’s total AUM, indicating stronger institutional confidence in the asset’s long-term prospects. Analysts suggest that Ethereum is better positioned to benefit from dovish monetary signals and its expanding role in decentralized finance and staking markets. Furthermore, Ether’s economic design, which typically results in neutral or negative net issuance of new coins, helps constrain supply and supports price appreciation [7].

The contrasting performances of Bitcoin and Ethereum underscore the evolving dynamics of the crypto market. While Bitcoin’s outflows reflect caution in the face of macroeconomic volatility, Ethereum’s inflows and technical indicators suggest a stronger case for continued growth. However, the broader market remains sensitive to central bank actions, particularly the Federal Reserve’s stance on interest rates. With investors closely watching upcoming labor and Core PCE data, the next few weeks could determine whether Bitcoin regains bullish momentum or remains under pressure [7].

Source: [1] Bitcoin futures demand rises even as BTC sells off (https://cointelegraph.com/news/bitcoin-futures-demand-rises-even-as-btc-sells-off-what-gives) [2] Ether price enters 'belief zone' following $5K all-time highs (https://cointelegraph.com/news/20k-eth-price-in-play-ethereum-belief-zone) [3] CoinShares Discusses the Value of Bitcoin Investing (https://www.etftrends.com/coinshares-channel/coinshares-value-bitcoin-investing/) [4] Ether, the Ethereum's coin, breaks 2021 all-time high (https://www.axios.com/2025/08/24/ether-all-time-high) [5] Ether Price Enters 'Belief Zone' Following $5K All-Time Highs (https://cointelegraph.com/news/20k-eth-price-in-play-ethereum-belief-zone) [6] CoinShares: Crypto Funds Hit $1.43B Outflows Since March (https://cryptonews.com/news/crypto-funds-face-1-43b-outflows-largest-since-march-coinshares/) [7] Market Update – August 22, 2025: All Eyes on Powell and ... (https://etfdb.com/coinshares-crypto-etf-hub/coinshares-channel/market-update-august-22-2025/)