5 min readThe Bitcoin price has stabilised above $110,000, raising hopes that the recent selloff in the largest cryptocurrency is a short-term dip rather than anything more sinister. Meanwhile, Ethereum continues to trade with a strong upward bias, up 3% over the past 24 hours. The broader cryptocurrency market trades 1.8% higher at $3.86 trillion.
After falling 12% from its record high, BTC’s correction has paused above the key 110k level. BTC fell from a high of 124.4k on August 14. Selling pressure briefly increased, causing a spike in exchange inflows and pulling the price down to a low of 108.6k on the previous day. Those inflows are falling again. At the time of writing, BTC trades at 110.6k, finding support as institutional inflows also return, and Federal Governor Lisa Cook said she will file a lawsuit against Trump for firing her.
Fed Cook calms market nerves
Trump fired Lisa Cook at the start of the week in a move that unnerved the markets, raising concerns over the Fed’s independence. However, Cook’s response to Trump’s overstep has allowed the markets to move forward. There has been no change to market rate cut expectations, with the Fed funds pricing in 87% probability of a rate cut in September, following Powell’s dovish lean at the Jackson Hole Symposium.
BTC institutional demand steadies
Recent data from SoSoValue showed that institutional demand has steadied this week. BTC ETFs recorded slight inflows of $88.20 million on Tuesday, marking the second consecutive day of inflows following $1.5 billion in outflows the previous week. Since the introduction of BTC ETFs, flows of capital into them have been considered a key indicator of market strength. There has been a notable slowdown in demand this month. Traders will be watching the ETF in place in the coming days and weeks, leading up to the September Federal Reserve rate decision.
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ETH institutional, corporate & whale demand rises
Meanwhile, ETH ETFs continue to see strong inflows, with August net inflows reaching 3.69 billion. Not only is Ethereum experiencing strong institutional inflows, but there are also growing signs of Ethereum’s role in corporate treasuries. This was highlighted by major disclosures from publicly listed firms.
Bitmine immersion technologies revealed that combined crypto and cash reserves now exceed $8.82 billion. As of August 24, the firm’s portfolio consisted of 1,713,899 ETH. Ethereum’s momentum is being reinforced not just by institutional treasuries and corporate accumulation but also whale demand.
Arkham noted on Tuesday that nine massive whale addresses bought a cumulative $456 million worth of ether from Bitcoin Galaxy Digital.
Growing whale demand for the world’s second-largest cryptocurrency signals a natural rotation into ETH with more upside potential. Investors have been locking in profits from Bitcoin’s run and moving into other tokens to capture potential upside, in a similar way to in previous cycles.
Data also shows that flows into ETH at $ 0.9 billion per day, silver is closing in on Bitcoin’s inflows.
ETH forecast – technical analysis
Despite the pullback from its record high of 4955, ETH/USD continues to trade in its multi-month rising channel. The recent pullback found support on the lower band of the channel and rebounded higher. Buyers will look to rise back up to 4955 and fresh record levels. Support is seen at 4300 and 4050, last week’s low.
Trading involves risk.
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