Bitcoin began the week on fragile footing, hovering near $108,600 after briefly bouncing from a weekend low of $107,500.
The world’s largest cryptocurrency has shed nearly 10% since mid-August, when it reached a high of $124,500. September is adding to investor unease—historically, the month has averaged nearly a 4% decline for Bitcoin since 2013, earning it the nickname “Rektember.”
ETF flows reflect the shifting sentiment. U.S. spot Bitcoin exchange-traded funds logged $126 million in outflows on August 29, ending a six-week streak of steady inflows. For the month, Bitcoin products lost $751 million, a sharp reversal from the $6 billion inflows seen in July. Analysts warn that failing to hold support between $112,000 and $115,000 could open the door to a deeper slide toward $103,000.
Still, underlying conviction remains. Bitcoin’s “realized capitalization”—a measure of coins priced at their last transaction value—has climbed to a record $1.05 trillion, signaling that long-term holders are standing firm despite short-term price weakness.
Ethereum Emerges as Institutional Favorite
While Bitcoin struggles to maintain momentum, Ethereum is attracting the lion’s share of institutional flows. According to CoinShares, Ethereum accounted for $1.42 billion—or 57%—of all digital asset inflows last week. Across August, ETH investment products secured nearly $4 billion in inflows, compared with a $301 million outflow from Bitcoin.
Ethereum’s price, however, has not mirrored the strength of its fund flows. The token trades near $4,406, down 1.5% on the day and 4.3% on the week. Resistance remains at the $4,700–$4,867 band, the latter marking ETH’s all-time high. Analysts suggest that a decisive break above this zone could open the path toward $5,000 and beyond. If rejected, downside support lies around $3,600.
The structural case for Ethereum continues to build. Stablecoin issuance on its network has hit a record $160 billion, while the launch of Ether ETFs has concentrated investor demand. Ethereum co-founder Joseph Lubin has gone as far as projecting a 100x rally over time, citing Wall Street adoption of the blockchain’s financial infrastructure.
Market Faces Crossroads Ahead of Fed Decision
The broader crypto market remains under pressure, sliding nearly 5% over the past week as traders eye the Federal Reserve’s September meeting. With rates steady at 4.25%–4.50%, a cut is widely expected. A modest 0.25% move is seen as likely, though some analysts argue for a larger 0.50% reduction to support risk assets like crypto.
For now, capital rotation is shaping the landscape. Bitcoin’s market dominance has held steady around 58%, but altcoins—including Ethereum, Solana, and XRP—are capturing meaningful inflows. Predictive markets see Bitcoin dominance as a coin flip between climbing to 63% or sliding toward 53% next.
The coming weeks may determine whether Bitcoin can shake its September curse or whether Ethereum’s rising institutional backing will set the tone for the next phase of crypto markets.
Conclusion
Crypto investors enter September at a pivotal juncture. Bitcoin remains the market anchor, but its seasonal weakness and ETF outflows are testing sentiment. Ethereum, despite price softness, has emerged as the clear institutional favorite, commanding record inflows and strengthening its role in decentralized finance. With the Federal Reserve’s rate decision on deck, volatility is likely to stay elevated. For retail investors, the message is clear: the battle between Bitcoin’s dominance and Ethereum’s momentum is far from settled.
Crypto investors enter September at a pivotal juncture. Bitcoin remains the market anchor, but its seasonal weakness and ETF outflows are testing sentiment. Ethereum, despite price softness, has emerged as the clear institutional favorite, commanding record inflows and strengthening its role in decentralized finance. With the Federal Reserve’s rate decision on deck, volatility is likely to stay elevated. For retail investors, the message is clear: the battle between Bitcoin’s dominance and Ethereum’s momentum is far from settled.
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