Ethereum Surges Over 6% While Bitcoin Holds Steady
As of now, BTC trades at $114,993, up 0.4% on the day, but still down 2.6% on a weekly basis.
Quick overview
- Bitcoin started August on a downward trend but remains close to its all-time high, trading at $114,993.
- Ethereum surged over 6%, helping to ease broader losses in the crypto market, while Bitcoin posted only a slight gain.
- Despite recent outflows of $404 million from Bitcoin investment products, net inflows of $12.2 billion over the past month indicate moderate profit-taking.
- Historically, August has been a challenging month for cryptocurrencies, with risks of extended corrections due to the Fed's stance and ongoing trade tensions.
The world’s leading cryptocurrency started August on a downward trend, though it remains within reach of its all-time high.
Ethereum (ETH) surged more than 6% on Monday, helping ease the broader losses seen across crypto markets over the past week. Meanwhile, Bitcoin (BTC) posted only a slight gain and has yet to recover from last week’s drop. As of now, BTC trades at $114,993, up 0.4% on the day, but still down 2.6% on a weekly basis.
Crypto assets are rebounding alongside major Wall Street indices, as global markets stage a recovery amid growing expectations that the Federal Reserve will ease interest rates. Last week, equities and digital assets slumped following aggressive U.S. tariff announcements and disappointing job data, both of which rattled global markets.
On Friday, Bitcoin saw $404 million in outflows from investment products — including spot ETFs — pushing its price below $112,000. Although BTC later bounced back to around $114,000, the market reaction highlighted investor caution. Despite this pullback, CoinShares noted that net inflows of $12.2 billion over the past 30 days — roughly 50% of the annual total — point to moderate profit-taking rather than broad pessimism.
Altcoins Join the Rally
Ethereum, the second-largest cryptocurrency by market capitalization, rose 6.2% to $3,718, trimming its weekly loss to 2%. The rally extended to other altcoins:
- Ripple (XRP) rose 5%
- BNB increased 1.8%
- Solana (SOL) gained 3.9%
- Dogecoin (DOGE) advanced 4.8%
- Tron (TRX) edged up 1.8%
A recent report noted that August has historically been a challenging month for major cryptocurrencies, with consistently negative returns since 2021. As long as the Fed maintains a restrictive stance and trade tensions remain unresolved, the risk of an extended correction in crypto markets continues to loom.
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