Bitcoin slips below $115,000 as Jackson Hole looms

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Bitcoin slips below $115,000

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Key takeaways

- Bitcoin dropped below $115,000 and Ether fell to $4,220 ahead of Powell’s Jackson Hole speech.

- More than $400 million in long positions were liquidated overnight as selling pressure accelerated.

- BlackRock’s Ether ETF hit records, with $2.32 billion in inflows and 364.25 million shares traded.

- Altcoins face greater risk, with the bitcoin-to-altcoin liquidation ratio at its lowest since 2024.

Market pressure builds ahead of Powell’s speech

Market direction hinges on Fed signals from Jackson Hole, which could reshape sentiment this week.

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Analysts say the market decline reflects heightened uncertainty about the Fed’s interest-rate outlook and broader macroeconomic conditions. Bitcoin’s retreat marks a sharp pullback from the record high of $124,000 reached last week, while ether’s slide follows a surge in validator exits and rising concerns about liquidation risks.

Bitcoin price dynamic (July - August 2025). Source: Tradingview

Liquidations and Market Dynamics

The downturn triggered significant market liquidations. According to QCP Capital, more than $400 million in long positions were liquidated overnight as Bitcoin fell from $118,000 to $115,000 and Ethereum from $4,500 to $4,300. Last week alone, the market endured over $1 billion in DeFi liquidations alongside profit-taking, underscoring fragile sentiment.

Funding rates have turned negative, and risk reversals now favor puts—indicators that traders are hedging against further downside. Ether’s losses were amplified by a record validator exit queue, with 855,158 tokens worth $3.5 billion preparing to leave the network.

ETF Activity and Broader Market Trends

Despite the sell-off, crypto ETFs registered unprecedented activity. BlackRock’s Ether ETF (ETHA) saw record trading volume of 364.25 million shares and inflows of $2.32 billion last week. Spot Bitcoin and Ether ETFs collectively posted $40 billion in weekly trading volume, including $17 billion from Ether ETFs and $2.85 billion in net inflows.

Industry observers note that while short-term volatility remains, the structural foundation of crypto investment continues to strengthen. Altcoins, however, have come under increasing speculative pressure. Data from CryptoQuant show the bitcoin-to-altcoin liquidation ratio fell to its lowest point since early 2024, signaling outsized risk-taking in smaller tokens—a pattern often seen at market tops.

Outlook

As Powell’s speech nears, investors are weighing whether the Fed will maintain a hawkish stance or open the door to easing. With digital assets under pressure, the coming week may set the tone for whether crypto markets stabilize or face deeper corrections.

We also informed that Hong Kong warns of rising fraud risks amid new stablecoin regulations.

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