Quick overview

---

Bitcoin traded near its three-week lows as traders continued to retreat from the record highs reached in July amid the US’s euphoria over digital asset adoption. , the cryptocurrency hit its lowest level in three weeks with a price level at $114K

The first US regulatory guidelines for cryptocurrency were signed into law by Donald Trump just days before Bitcoin reached a record high of $123,200 on July 14. After surpassing $4 trillion in total market capitalization for the first time in July, the broader cryptocurrency market retreated, and Ether dropped as much as 5 percent to $3.5K.

Record-breaking ETF inflows fueled that rally. According to data compiled by Bloomberg, Bitcoin ETFs experienced $6 billion in net inflows last month, marking the third-best month ever, while US Ether ETFs recorded $5.4 billion, their highest on record.

Recently, ETF inflows have slowed, and demand has cooled, as shown by key institutional metrics. Data from researchers Coinglass shows that over $800 million in long positions were liquidated on Saturday, with Ether leading the cuts at $251 million and Bitcoin at $200 million.

CryptoQuant reports that, after nearly two months of rising readings, Bitcoin’s Coinbase premium—a gauge of US investor interest—turned negative this week. Additionally, from July highs, open interest in Bitcoin and Ether futures on CME has decreased by 13% and 21%, respectively.

Coinbase dropped as much as 17% on Friday following the release of lower-than-expected second-quarter revenue by the biggest US cryptocurrency exchange, which coincided with a decline in digital asset market volatility.