Key Notes
- Bitcoin stalled under $120K whereas Ethereum surged to recent all-time highs.
- Weak whale demand and ETF outflows restricted BTC upside.
- By-product market information exhibits a $3 billion cluster of brief positions at $117,800.
Bitcoin’s value stalled at round $117,000 on Saturday, Aug 23, with intraday positive aspects capped at simply 3%. In contrast, Ethereum (ETH) surged greater than 10% to achieve a recent all-time excessive of $4,900. This transfer adopted dovish feedback from Federal Reserve Chair Jerome Powell on the Jackson Gap symposium, signaling decrease rates of interest.
Fed Watch Software Exhibits 75% probability of charge minimize after Fed Chair Speech on Friday | Supply: CME Group
Powell famous that draw back dangers to employment have risen, opening the door for a doable charge minimize in September. In response, CME Group’s Fed Watch tool exhibits analysts now pricing in 75% of a charge easing within the subsequent FOMC slated for September 17, 2025.
Altcoins reacted strongly with ETH, Ripple (XRP), Solana (SOL), and Cardano (ADA) all posting double-digit positive aspects prior to now 24 hours, consolidating above key resistance ranges at $4,750, $3, $200, and $0.90, respectively, on the time of publication.
Bitcoin, nevertheless, did not preserve tempo, shortly retreating to $115,600, after a rejection from its intraday peak of $117,370. Market metrics spotlight three essential causes behind BTC’s underwhelming efficiency in comparison with its rivals.
1. Bitcoin Sees Weak Demand Amongst Coinbase Whale Merchants
One main issue has been weak institutional demand. Cryptoquant’s Coinbase Premium Index, which measures the distinction between Bitcoin costs on Coinbase Professional, dominated by US-based company traders and retail-dominated Binance, fell to 0.002%, its lowest since Aug. 1.
Bitcoin Premium Index falls to 21-day low on August 22 | Supply: CryptoQuant
When this metric developments adverse or near-zero, it alerts that company traders are exhibiting little urge for food, leaving retail merchants to drive market exercise. The 21-day low studying on Fridays steered that whereas retail participation was sturdy, whale patrons within the U.S. remained hesitant.
This cautious stance amongst establishments has weighed closely on Bitcoin’s skill to push larger towards its layer-1 rivals.
2. Bitcoin ETFs Didn’t Register a Single Day of Influx this Week
ETF flows this week additional emphasised investor preferences, sidelining Bitcoin. In keeping with Farside Buyers, Bitcoin funds recorded $23 million in outflows on Friday.
This meant that the Bitcoin ETF did not register a single day of internet inflows this week, shedding $1.2 billion as withdrawals exceeded deposits in six consecutive buying and selling days relationship again to Aug. 15.
Bitcoin ETF Flows August 2025 | Supply: Farside Buyers
In distinction, Ethereum ETFs pulled in $337 million in internet inflows on Friday after taking in $287 million on Thursday.
This divergence highlights how investor capital rotated towards Ethereum and different altcoins following Powell’s remarks, leaving Bitcoin sidelined within the rally. With out ETF inflows to help upward stress, BTC’s upside trajectory was inevitably capped.
3. BTC Bulls Face $3B Resistance Cluster at $117,800
By-product market information provides additional insights into Bitcoin’s laggard value motion under $120,000 on Friday. Coinglass liquidation maps present the distribution of leveraged positions throughout key value ranges. At first look, sentiment leans bullish, with whole lengthy leverage of $6.86 billion narrowly exceeding shorts at $6.64 billion.
Bitcoin Liquidation Map as of August 23, 2025 | Supply: Coinglass
Nonetheless, a deeper look reveals over $3 billion price of shorts clustered at $117,800, practically 50% of all energetic draw back bets. Such concentrated brief leverage incentivizes strategic sell-offs, as merchants try to stop a breakout past that key value degree. Bitcoin’s rejection from the intraday excessive of $117,377 aligns intently with this resistance wall.
Bitcoin Value Forecast
Given the $117,800 resistance cluster, Bitcoin is unlikely to maintain a clear break above $120,000 with out recent inflows. Except bullish liquidity overwhelms brief incentives, near-term value motion might consolidate between $113,500 help and $118,000 resistance.
A decisive shut above $118,000 may set off a brief squeeze, setting the stage for a push towards $123,000. Conversely, failure to defend $113,500 might open a retracement path again towards $110,000.
Disclaimer: Coinspeaker is dedicated to offering unbiased and clear reporting. This text goals to ship correct and well timed data however shouldn’t be taken as monetary or funding recommendation. Since market circumstances can change quickly, we encourage you to confirm data by yourself and seek the advice of with knowledgeable earlier than making any selections based mostly on this content material.
Ibrahim Ajibade is a seasoned analysis analyst with a background in supporting numerous Web3 startups and monetary organizations. He earned his undergraduate diploma in Economics and is at the moment finding out for a Grasp’s in Blockchain and Distributed Ledger Applied sciences on the College of Malta.
