Bitcoin consolidates as liquidity flows shift to Ethereum and broader altcoin markets

Bitcoin (BTC) consolidates adjacent existent levels arsenic superior inflows widen on the hazard curve toward Ethereum and broader altcoins, according to Bitfinex Alpha’s Aug. 25 report.

The study noted that the displacement represents a measured rotation of organization liquidity pursuing Bitcoin’s all-time precocious formation.

Bitcoin declined 4.5% from the play unfastened connected Aug. 18 until Aug. 22, sliding to section scope lows arsenic investors de-risked up of the Federal Reserve’s Jackson Hole symposium.

The plus reached $111,990 amid renewed weakness successful US spot exchange-traded funds (ETFs) flows, with Bitcoin ETFs signaling $1.18 cardinal successful nett outflows implicit the week. As of property time, BTC mislaid the $110,000 threshold and is priced astatine $109,795.71.

Federal Reserve Chairman Jerome Powell’s dovish remarks astatine Jackson Hole triggered a crisp rebound successful hazard assets, sparking a broad-based abbreviated compression crossed crypto.

Ethereum led the recovery, surging to a caller all-time precocious of $4,958.70 connected Aug. 24 and demonstrating its relation arsenic a liquidity operator for organization markets.

Spot ETH ETFs registered $197 cardinal successful outflows connected Aug. 18 alone, marking the third-largest regular exit connected record. However, Ethereum treasury companies absorbed important selling pressure, with preliminary estimates suggesting meaningful organization support.

Corporate treasuries, including SharpLink Gaming, Bitmine Immersion Technologies, and BTCS, accelerated accumulation, with on-chain treasury balances exceeding $10 billion. The study noted that the rotation reflects softer superior inflows into Bitcoin pursuing its Aug. 14 all-time precocious of $123,640.

Bitcoin’s realized headdress expanded astatine 6% per period during the existent move, compared to 13% monthly maturation during late-2024 breakouts supra $100,000, indicating much cautious capitalist appetite.

Macro signals stay supportive

Global liquidity conditions stay supportive, with the combined M2 wealth proviso from large cardinal banks approaching $100 trillion. The structural upward inclination successful planetary liquidity reinforces the semipermanent bullish lawsuit for integer assets, though superior allocation has go much selective.

Solana climbed supra $200 to scope $212.60 arsenic the broader integer plus people pushed higher alongside equities, reflecting tightening correlations betwixt crypto and accepted hazard assets. Meanwhile, web improvement continues to advance, showcased by DBS Bank’s caller tokenized enactment issuance connected Ethereum.

In this backdrop, Bitfinex expects Bitcoin to stay range-bound portion Ethereum attracts heightened organization demand, mirroring Bitcoin’s dynamic from aboriginal 2024.

The study anticipated much important superior rotation into higher-risk altcoins aboriginal successful the cycle, with broader marketplace re-rating babelike connected renewed Bitcoin ETF inflows and caller altcoin concern vehicles.

The station Bitcoin consolidates arsenic liquidity flows displacement to Ethereum and broader altcoin markets appeared archetypal connected CryptoSlate.