Bitcoin Slips Below $115K as ETF Outflows, Regulatory Risks Sap Momentum
Bitcoin hovered around $113,700 on Thursday, unable to sustain levels above $115,000 as resistance from the 50-day moving average blocked further upside. The overall crypto market rose just 1% to $3.86 trillion in capitalization, a move analysts say resembles a weak bounce rather than a true recovery.
“Bitcoin’s inability to reclaim $115K underscores fragility in risk sentiment, especially with pressure building in the traditional tech sector,” said Alex Kuptsikevich, chief market analyst at FxPro.
ETF data reflects investor caution. Per SoSoValue, Bitcoin ETFs saw net outflows of $523 million on August 19, followed by $311 million and $192 million on subsequent days. Ethereum ETFs also posted over $500 million in redemptions during the same period. The withdrawals reversed gains from the prior week, with Kronos Research citing profit-taking and liquidations after BTC’s earlier peak.
Sentiment was further clouded by regulatory developments. The SEC is investigating Alt5 Sigma after its $1.5 billion deal with World Liberty Financial — a firm with ties to U.S. President Donald Trump.
Ethereum’s fundamentals weakened as active addresses fell 28% since July 30. ETH traded at $4,289, up 0.4% on the day, but down more than 7% from recent highs. Analysts point to reduced retail participation as a headwind.
XRP dropped to $2.87, while Solana held around $183, with both tokens sliding over 6% in the past week. Traders say dovish signals from the Fed could prompt short-term rebounds, though sustained inflows are still lacking.
In the options market, the 30-day delta skew for Bitcoin reached 12% — a four-month high — signaling growing demand for downside protection.
“Macro forces are the primary drag on Bitcoin right now,” said Ruslan Lienkha, chief of markets at YouHodler. “Crypto-native risks are limited, but broader risk-off sentiment is driving the pullback.”
Lienkha noted that it remains unclear whether this is a short-term correction or the beginning of a broader reversal. “Markets seem to be in the late phase of a bullish trend.”
Despite near-term weakness, some firms remain bullish on long-term prospects. Bitwise said pension fund allocations could propel BTC to $200,000 by year-end, potentially surpassing the impact of spot ETF approvals. The first flows could begin this autumn, the firm added.
Markets are now focused on Jerome Powell’s upcoming speech at Jackson Hole. A dovish tone could ease pressure on crypto assets, while a firmer stance may prolong the correction, which has already pulled Bitcoin down 9% from its recent peak.
