Ethereum News Today: Bitcoin's Rate Cut Wait Game as Ethereum Gains Institutional Edge

Bitcoin’s price has retreated toward $112,000, marking a two-week low, amid heightened market nervousness ahead of the Federal Reserve’s Jackson Hole symposium. The decline has been attributed to macroeconomic uncertainties, particularly investor concerns over the timing of interest rate cuts. As of August 12, expectations for a September rate cut had fallen from 94% to 82%, according to CME Group’s FedWatch tool, after the Consumer Price Index showed inflation remaining above the Fed’s 2% target. Analysts suggest that a delayed rate cut could disrupt short-term liquidity and impact digital asset markets, though a cut in 2025 could provide a bullish catalyst for Bitcoin. “The first interest rate cut of 2025 may become a significant market catalyst,” said André Dragosch of Bitwise, noting that it could accelerate US money supply growth and support Bitcoin’s rally through year-end [1].

Ethereum, meanwhile, has captured growing institutional attention, with on-chain activity and ETF inflows supporting its resurgence. Citigroup reported that spot Ethereum ETFs have seen over $13 billion in cumulative net inflows since April, with institutional and treasury companies boosting holdings to nearly $10 billion. Ethereum’s on-chain accumulation, as large wallets remove supply from exchanges, is also contributing to a tightening of available liquidity and reinforcing price action. The report noted that Ethereum’s rally has challenged Bitcoin’s dominance, with its market share slipping from 65% in May to 59% in August, signaling capital rotation toward altcoins. This shift has been supported by regulatory clarity, including the SEC’s indication that liquid staking tokens may not be classified as securities [4].

Corporate treasuries have also played a role in Ethereum’s rising institutional demand. Bitmine Immersion Technologies, for instance, has acquired 1.15 million ETH, while large corporate holders now control approximately 2.95 million ETH, representing over 2% of the total supply. This level of accumulation is creating a narrative similar to Bitcoin’s corporate treasury strategy, with Ethereum and Solana gaining traction as companies diversify their digital asset portfolios [5]. The growing institutional interest in Ethereum has also spurred momentum for high-beta tokens like ARB, ENA, LDO, and OP, with LDO seeing a 58% gain in a single month [5].

Despite Bitcoin’s recent dip, the broader crypto market remains resilient. Over 297 public entities are now holding Bitcoin, up from 124 in early June, according to BitcoinTreasuries.NET. These include corporations, investment funds, and government entities, which collectively hold over 3.67 million BTC—nearly 17% of the total supply. The continued corporate accumulation of Bitcoin and Ethereum reflects a broader trend of institutional adoption, with companies viewing digital assets as a strategic reserve asset. This trend has been reinforced by recent regulatory developments, including the SEC’s Project Crypto initiative and the passage of the GENIUS Act, which provides a federal framework for stablecoins [2].

Looking ahead, the market remains focused on the Fed’s policy direction. The August CPI data has heightened expectations for a delayed rate cut, which could weigh on risk assets in the short term. However, analysts argue that a 2025 rate-cutting cycle could act as a tailwind for digital assets, especially if it drives capital into riskier assets like crypto ETFs and stablecoins. The ongoing volatility has also triggered forced liquidations, with over $500 million in long position sales recorded in the past 24 hours, according to CoinGlass. This activity has been attributed to profit-taking and shifting risk appetites, particularly as traders prepare for the Jackson Hole meeting [3].

While Bitcoin faces near-term headwinds, Ethereum’s growing institutional demand is creating conditions favorable to an extended altcoin season. Spot Ethereum ETFs have begun attracting more capital than their Bitcoin counterparts, with the ETH ETF supply-to-holdings ratio now at 5%, compared to 6.4% for Bitcoin ETFs. If this trend continues, Ethereum ETFs could surpass Bitcoin ETFs in total supply held by September, according to Hildobby. This shift could signal a broader reallocation of capital into Ethereum and related tokens, driven by improved regulatory clarity and corporate adoption [6].

Source:

[1] Cointelegraph (https://cointelegraph.com/news/bitcoin-dips-fed-powell-speech)

[2] Yahoo Finance (https://finance.yahoo.com/news/bitcoin-could-reach-200000-within-6-months-during-long-exhausting-crypto-bull-market-173358527.html)

[3] CNBC (https://www.cnbc.com/2025/08/18/crypto-market-today.html)

[4] Coindesk (https://www.coindesk.com/markets/2025/08/20/ether-resurgence-gains-steam-backed-by-spot-etf-demand-and-on-chain-growth-citi)

[5] ForkLog (https://forklog.com/en/institutional-demand-for-ethereum-may-ignite-altcoin-season/)

[6] Cointelegraph (https://cointelegraph.com/news/ether-etfs-197m-outflows-second-largest)