Bitcoin Slips Below $115K as Market Cools; Altcoins Fade and ETF Inflows Dry Up
Bitcoin remained under pressure on Tuesday, struggling to regain footing above $115,000 as investors pulled back amid renewed macro uncertainty and stalling institutional inflows. The broader crypto market continues to tread cautiously, with capital rotating out of altcoins and into safer, high-liquidity assets—or exiting entirely.
BTC hovered near $114,200 in Asian trading hours, steady on the day but down significantly from last week’s local highs near $120,000. The recent downturn triggered over $1 billion in liquidations, primarily from overextended long positions, as risk sentiment deteriorated.
Ethereum Steadies as Institutional Demand Persists
Ether (ETH) has outperformed relative to the rest of the market, climbing back toward $3,650 after dipping below $3,550 over the weekend. While broader sentiment remains cautious, ETH has benefited from sustained interest tied to staking yields, tokenization narratives, and treasury strategies.
“Ethereum is retracing its losses faster than Bitcoin,” said Nick Ruck, director at LVRG Research. “Institutions are still active. Between the IPO pipeline, treasury adoption, and overall network value, ETH continues to attract long-term capital.”
Altcoins Pull Back as “Altseason” Narrative Fizzles
The recent optimism around a potential “altseason” appears to be fading. Solana (SOL) is down nearly 20% from last week’s peak, while XRP has stalled just below $3.00. Many traders are de-risking as altcoins underperform, choosing to consolidate around BTC and ETH or reduce exposure altogether.
With liquidity drying up across mid-cap names and momentum trades reversing, the rotation back into majors reflects a defensive posture in a risk-off environment.
Macro Pressures and Weak ETF Flows Cloud Outlook
Global macro concerns are weighing heavily on sentiment. Friday’s softer-than-expected U.S. jobs data and new tariff proposals from Donald Trump have added to investor caution, sending capital toward traditional safe havens and away from risk assets like crypto.
Spot ETF flows have weakened in tandem. Friday marked one of the largest outflow days for both bitcoin and ether ETFs, undermining the thesis that institutional products would buffer volatility during downtrends.
Derivatives Activity Signals Strategic Positioning
Despite the pullback, derivatives markets show that some traders are preparing for a rebound. QCP Capital described the recent move as a “healthy correction” in a Monday note, highlighting strong open interest in 29AUG25 BTC call flys targeting $124,000.
Put skew remains elevated, but far from panic territory. According to QCP, a sustained recovery above $115K—paired with renewed ETF inflows—could quickly shift market momentum back in the bulls’ favor.
What Comes Next
All eyes are on ETF flow data and upcoming macro developments as potential catalysts. Without fresh inflows or improving sentiment, the market may continue to drift in consolidation. However, traders remain alert for signs of a technical breakout or renewed institutional buying.
Until then, Bitcoin’s hold near $114K and altcoin underperformance paint a cautious, risk-averse picture of the current market environment.
