Crypto Market Turns Bearish On BTC & ETH In August

Bitcoin and Ethereum prices drop in August

The crypto market turned red at the start of the week. Bitcoin (BTC) is trading around $116,263, down 1.1% in the last 24 hours and 2% on the week. Ethereum (ETH) also struggled, falling 3.8% to $4,322. The CoinDesk 20 (CD20), tracking the largest crypto assets, dropped 2.4%.

Traders turn bearish – Prediction markets flash red

According to Polymarket, there is now a 34% chance that Bitcoin will close below $111,000 by the end of August. For Ethereum, the highest probability (43%) is a finish near $4,800. This cautious sentiment comes as markets wait for Fed Chair Jerome Powell’s speech at the Jackson Hole symposium, expected to address inflation.

Institutions keep buying, retail remains cautious

Institutional investors remain confident. Strategy Inc. recently purchased 430 BTC, and VanEck reiterated its $180,000 year-end Bitcoin target. However, retail investors remain hesitant, partly due to SEC delays in approving XRP and DOGE ETFs. Solana (SOL) stands out with strong momentum, driven by dominance in USDC transfers and new token issuance.

Derivatives show defensive positioning

Perpetual futures funding rates have turned negative, signaling growing selling pressure. Options markets are skewed toward puts, highlighting traders’ defensive stance ahead of potential volatility.

Conclusion: A risky August for crypto

While institutional demand and ETF inflows still support Bitcoin and Ethereum, the lack of retail participation makes the market fragile. With Powell’s Jackson Hole speech approaching, BTC and ETH prices are likely to remain volatile and cautious in the short term.

Disclaimer: This article is intended solely to provide information and market insights at the time of publication. We make no promises or guarantees regarding performance, returns, or the absolute accuracy of the data. All investment decisions are the sole responsibility of the reader.