Crypto market summary: Ethereum sets a record while Bitcoin declines
Over the weekend, there was volatility in the cryptocurrency market, with the overall market value falling $42 billion in a single day, highlighting investor nervousness. Fragile sentiment was highlighted by losses that at one point approached $98 billion before a partial recovery.
A whale allegedly sold 24,000 Bitcoin (BTC), causing the price to plummet from its post-Powell rally high of $116,900 to about $112,500. On the other hand, when long-term holders took profits, Ethereum (ETH) resisted the general fall and hit an all-time high.
Key takeaways
Market cap drops by $42B: Powell-driven gains were erased when the cryptocurrency market fell 2.2% over the weekend.
– Bitcoin flash crash: Despite expectations of September Fed rate reduction, BTC fell following a significant sell-off.
– Ethereum sets ATH: Despite whales cashing out millions of dollars in long-held holdings, ETH reached a record high.
Sentiment is still brittle, climbing marginally from dread but not yet into positive territory, according to the dread and Greed Index at 50.
Market volatility deepens
Over the course of the last day, the entire cryptocurrency market value dropped $42 billion, representing a 2.2% weekend decline. A combination of macroeconomic factors, such as tariff-driven inflation worries, and regulatory uncertainties are cited by analysts. Prices were momentarily raised by Fed Chair Jerome Powell’s dovish remarks at Jackson Hole, but markets soon turned around.
Bitcoin struggles after whale sell-off
Following Powell’s comments, Bitcoin experienced a quick roughly 4% increase, rising from $112,500 to $116,900. But when a whale unloaded 24,000 BTC, momentum vanished, and there was a sudden plunge back toward $113,000. Despite expectations for a rate decrease in September, options market data indicates that hedging activity is still substantial and vigilance is warranted.
Ethereum bucks the trend
Despite widespread drops, Ethereum stood out as the weekend’s anomaly, reaching a fresh all-time high. Ethereum has surpassed $4,930 to reach a new all-time high. Since then, though, the price has dropped and is currently trading at about $4,717. Strong market volatility is reflected in the move, as some investors profited from the spike.
Dynamics of the ETH price (August 2025). TradingView is the source.
Long-term holders were found to be profit-taking, according to on-chain statistics. One address, for example, transferred 1,962 ETH worth $4.7 million to OKX after holding the cryptocurrency for 11 years. ETH’s tenacity, however, underscores rising institutional and retail demand.
Investor sentiment improves slightly
The Fear and Greed Index climbed from 44 to 50, indicating a modest recovery from fear to neutral. Analysts warn, however, that fragile confidence could be tested again this week depending on macroeconomic data and regulatory developments.
Conclusion
The cryptocurrency market is still torn between fear of whale behavior and macroeconomic uncertainty and hope for future Fed rate cuts. With Ethereum hitting all-time highs and Bitcoin under pressure, traders must contend with a dynamic environment where opinions change quickly. Whether September’s policy choices will stabilize markets or widen the existing gap will become clear in the upcoming weeks.
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