Crypto Markets Steady as Investors Shift Toward Ether; BTC Demand Softens
As Bitcoin demand slows and profit-taking ramps up, investors are rotating into ether and select resilient assets, signaling the end of a broad-based “altseason” and the emergence of a more focused market environment.
Bitcoin (BTC) stabilized in Asian trading Thursday, up 1.4% at $114,610, recovering modestly from last week’s dip. Ether (ETH) led major tokens with a 5.8% gain to $4,370.73, as capital moved selectively across the crypto landscape.
The CoinDesk 20 Index, which tracks the performance of the largest digital assets, rose 3.5% to 4,078.
According to OKX Singapore CEO Gracie Lin, the uptick in the ETH/BTC ratio suggests a clear shift in capital allocation. “Crypto capital is becoming more selective,” Lin said, emphasizing that this is not a generalized altcoin rally but rather a targeted move into ETH ahead of key macro events such as the Jackson Hole Symposium and upcoming U.S. inflation data.
Fresh analysis from CryptoQuant highlights weakening demand behind Bitcoin’s recent rally. Estimated demand has declined from 174,000 BTC in July to just 59,000 BTC, while ETF inflows have dropped to their lowest levels since April.
Profit-taking remains elevated. On August 16 alone, whales locked in $2 billion in gains, pushing total realized profits since July to $74 billion. CryptoQuant now labels the current phase a “bullish cooldown,” identifying $110,000 as a key BTC support level.
Market maker Enflux added that retail enthusiasm for altcoins has faded notably over the past week. “The altcoin market has moved away from a broad beta rally to a more selective, fundamentals-driven phase,” the firm said. Strategic plays like BNB’s record highs and Hyperliquid’s operational strength continue to draw institutional flows.
The overall result: a market no longer driven by momentum or hype, but by selective strength. Ether remains the focal point, reflecting how capital is staying within crypto—but rotating with greater discipline.
Market Movers
- BTC: Up 1.4% to just above $114,000. Bitcoin shows modest strength as dominance dips toward a six-month low.
- ETH: Gained 5.8%, outperforming BTC as investors pivot to majors amid fading BTC demand.
- Gold: UBS lifted its Q1 2026 gold target to $3,600/oz, citing surging demand, de-dollarization, and central bank buying.
- S&P 500: Nasdaq lost 0.68%, S&P 500 slipped 0.26% as capital rotated from tech to defensive sectors ahead of Jackson Hole.
Headlines in Brief
- Winklevoss Twins Commit $21M to Republicans in U.S. Congressional races (CoinDesk)
- Crypto Industry Pushes UK for Stablecoin Roadmap to stay competitive with U.S. (CNBC)
- BitMEX Co-Founder Pardoned by Trump Joins Longevity Movement (Bloomberg)
