Bitcoin Demand Softens as Ether Leads Targeted Rotation; Altseason Momentum Ebbs
Bitcoin held steady around $114,610 in early Thursday Asia trading, edging up 1.4% as investors showed signs of rotating into more resilient tokens. Ether outpaced the broader market with a 5.8% rally to $4,370.73, reflecting a shift in capital as profit-taking accelerates and retail-driven altcoin momentum wanes.
The CoinDesk 20 index gained 3.5% to 4,078, highlighting the divergence in performance among major crypto assets.
Gracie Lin, CEO of OKX Singapore, said the rising ETH/BTC ratio signals a deliberate rotation. “Crypto capital is becoming more selective,” she told CoinDesk, adding that this isn’t a widespread altseason but a concentrated pivot toward Ether ahead of key macro events like Jackson Hole and fresh U.S. inflation data.
New analysis from CryptoQuant shows Bitcoin demand is tapering. Apparent buying has dropped from 174,000 BTC in July to just 59,000, while ETF inflows have reached their lowest levels since April. At the same time, whale profit-taking has surged — with $2 billion in realized gains recorded on August 16 alone, bringing total realized profits since July to $74 billion.
The firm now characterizes the market as in a “bullish cooldown,” with $110,000 acting as a major support zone.
Meanwhile, Enflux, a Singapore-based market maker, noted that retail participation in altcoins has declined sharply despite strength in names like BNB and Hyperliquid. “This is no longer a broad altcoin rally,” Enflux said. “Institutional flows are becoming more concentrated and fundamentals-driven.”
The result is a market increasingly defined by selective leadership, with ETH standing out as capital stays in crypto but migrates toward quality over hype.
Market Movers
- BTC: Edged up 1.4% to ~$114,000, stabilizing after recent losses
- ETH: Rose 5.8% as capital rotated into major assets
- Gold: UBS hiked its Q1 2026 price target to $3,600/oz on strong demand and macro risk
- Equities: Nasdaq fell 0.68%, S&P 500 slipped 0.26% as traders shifted away from tech stocks ahead of Jackson Hole
In Brief
- Winklevoss twins donate $21M to GOP for 2026 Congressional races (CoinDesk)
- UK crypto firms urge government to adopt a national stablecoin policy (CNBC)
- BitMEX founder pivots to longevity biotech after Trump pardon (Bloomberg)
