A Bitcoin logo at a cryptocurrency exchange in Barcelona. Photo: Bloomberg
Bitcoin is slipping to its weakest level in nearly two months as traders increasingly shift their attention toward Ether. The world’s largest cryptocurrency dropped as much as 0.8% to $108,719 during early Asian trading on Tuesday. The decline briefly pushed Bitcoin below its 100-day moving average, data showed.
The drop marks another retreat from Bitcoin’s mid-August record, underscoring the mounting pressure across digital-asset markets.
Ether Emerges as Trader Favourite
While Bitcoin struggles, Ether is gaining traction. The second-largest cryptocurrency surged to a record high of $4,955 on Sunday before easing slightly. Despite the pullback, investors are betting heavily that Ether’s rally has more room to run.
Capital flows reflect the changing momentum. In August alone, U.S. Bitcoin exchange-traded funds recorded more than $1 billion in net withdrawals. In contrast, Ether-linked funds attracted $3.3 billion in inflows — one of the clearest signals yet of an investor rotation toward Ethereum’s token.
Pain Across the Crypto Market
The shift has not shielded either token from market turbulence. Both Bitcoin and Ether are nursing losses after a sharp correction.
“It’s been a bloody start to the week for the majors, with over $900 million in liquidations across crypto markets,” said Sean Dawson, head of research at Derive.xyz. “The majority came from ETH at $324 million and BTC at $209 million. Nearly all were long positions forced underwater after a broad-based correction.”
The wave of forced liquidations highlights the fragility of sentiment, even as institutional interest in cryptocurrencies remains strong.
Traders Turn Defensive
Derivatives markets are showing a clear rise in caution. According to Dawson, the 25-delta skew — a metric that reflects demand for downside protection — has turned negative for both Bitcoin and Ether. This indicates that traders are paying more to hedge against losses than to speculate on gains.
Such moves suggest growing concern that Bitcoin could retest the $100,000 level, while Ether may be vulnerable to a pullback toward $4,000.
Uncertain Road Ahead
For now, digital-asset backers face a difficult balancing act. Bitcoin remains the dominant cryptocurrency by market value, but Ether’s recent rally and capital inflows are shifting investor sentiment.
The broader market is grappling with volatility, positioning traders on edge and reinforcing the risks inherent in crypto investing. While the long-term case for digital assets remains strong among many investors, the near-term outlook points to heightened uncertainty.
As Dawson noted, the correction may not be over. “Both Bitcoin and Ether face technical and psychological tests in the coming weeks. Markets will need stronger conviction to break away from this cycle of gains followed by heavy liquidations.”
For now, Bitcoin’s struggle to hold support and Ether’s attempt to extend its momentum are setting the stage for another pivotal period in the cryptocurrency market.
