Ethereum News Today: Institutional Confidence and Fed Moves Shape Crypto's Next Act

Bitcoin and Ethereum prices fell amid macroeconomic concerns and a wave of liquidations, with investors closely watching the Federal Reserve's Jackson Hole symposium for clues about future monetary policy. The price of Bitcoin dropped nearly 1.1% to $116,394.87 after reaching a record high of $124,496 last week. Ether, the second-largest cryptocurrency, declined by 2.5% to $4,354.00, while XRP and Dogecoin also saw downward movement. The pullbacks followed a surge in long position liquidations, with over $124 million in Bitcoin and $184 million in Ether positions sold in a 24-hour period. The decline was attributed to higher-than-expected July wholesale inflation data, which raised doubts about a September rate cut by the Federal Reserve [1].

The crypto market's volatility was further fueled by comments from U.S. Treasury Secretary Scott Bessent, who clarified that the strategic Bitcoin reserve established by President Donald Trump would be limited to forfeited coins. This announcement added to investor disappointment. The broader crypto market, as measured by the CoinDesk 20 index, fell 1.2%. Related stocks like Bitmine Immersion and Bullish also experienced declines, though some crypto firms such as Coinbase and Galaxy Digital posted small gains [1].

Investors remain focused on the Federal Reserve's upcoming Jackson Hole symposium for guidance on the central bank's remaining policy decisions. The event is expected to shed light on whether the Fed will pursue further rate cuts, a key factor influencing the direction of both traditional and digital asset markets. In addition, traders are watching jobless claims data for further macroeconomic signals [1].

Despite the recent decline, many analysts view the pullbacks as part of a healthy and strategic cooldown rather than a sign of a larger downturn. Support from crypto ETFs and continued accumulation by institutional and corporate entities suggest the bull market could continue. While Bitcoin ETFs recorded net outflows on Friday, they saw $547 million and $2.9 billion in net inflows for the week, with the latter representing a record for Ethereum funds [1].

On the technical side, Bitcoin's price fell near two-week lows as U.S. selling pressure intensified. Over $100 million in long positions was liquidated in an hour, pushing the price close to $113,500. On-chain data indicated weakening fundamentals, and ETF inflows are now a critical factor in determining the next phase of market momentum. Ethereum’s whale activity also highlights continued bullish sentiment. A large trader opened a $16.35 million long position on Ether with 25x leverage, betting on a rebound above $4,300 [2].

Despite the recent sell-offs, Ethereum ETFs remain a major component of the market. However, outflows from U.S. ETFs tracking Ethereum hit $197 million on Monday, the second-highest daily withdrawal ever recorded. This trend coincided with a surge in unstaking ETH withdrawals, reaching $3.9 billion in pending requests. Analysts warn that such outflows are pressuring near-term sentiment and that $4,400 has become a key support level for Ethereum [6].

Bitcoin and Ethereum continue to remain correlated with broader market trends and global liquidity. The U.S. S&P 500 also retreated after hitting new highs, indicating a potential consolidation phase in financial markets. If the Federal Reserve moves toward rate cuts, this could serve as a catalyst for both traditional equities and cryptocurrencies to resume their uptrends [3].

Overall, the recent price corrections do not signal the end of the bull market but rather a consolidation period before potential further gains. Institutional demand remains strong, and on-chain data suggests a continuation of long-term holder confidence. While macroeconomic uncertainty and geopolitical developments add volatility, the crypto market remains resilient and adaptive to shifting conditions [3].

Source:

[1] https://www.cnbc.com/2025/08/18/crypto-market-today.html

[2] https://cointelegraph.com/news/bitcoin-sell-pressure-palpable-btc-bid-support-stacks-at-105k

[3] https://bitcoinmagazine.com/markets/has-the-bitcoin-price-bull-market-topped

[4] https://cointelegraph.com/news/ethereum-whale-opens-16-3m-long-as-eth-price-eyes-bounce

[5] https://finance.yahoo.com/news/ethereum-big-backers-unleash-billions-130704758.html

[6] https://finance.yahoo.com/news/ethereum-etfs-lose-197-million-152531921.html