The report noted that the shift represents a measured rotation of institutional liquidity following Bitcoin’s all-time high formation.
Bitcoin declined 4.5% from the weekly open on Aug. 18 until Aug. 22, sliding to local range lows as investors de-risked ahead of the Federal Reserve’s Jackson Hole symposium.
The asset reached $111,990 amid renewed weakness in US spot exchange-traded funds (ETFs) flows, with Bitcoin ETFs recording $1.18 billion in net outflows over the week. As of press time, BTC lost the $110,000 threshold and is priced at $109,795.71.
Ethereum led the recovery, surging to a new all-time high of $4,958.70 on Aug. 24 and demonstrating its role as a liquidity driver for institutional markets.
Spot ETH ETFs registered $197 million in outflows on Aug. 18 alone, marking the third-largest daily exit on record. However, Ethereum treasury companies absorbed substantial selling pressure, with preliminary estimates suggesting meaningful institutional support.
Bitcoin’s realized cap expanded at 6% per month during the current move, compared to 13% monthly growth during late-2024 breakouts above $100,000, indicating more cautious investor appetite.
Global liquidity conditions remain supportive, with the combined M2 money supply from major central banks approaching $100 trillion. The structural upward trend in global liquidity reinforces the long-term bullish case for digital assets, though capital allocation has become more selective.
In this backdrop, Bitfinex expects Bitcoin to remain range-bound while Ethereum attracts heightened institutional demand, mirroring Bitcoin’s dynamic from early 2024.
The report anticipated more significant capital rotation into higher-risk altcoins later in the cycle, with broader market re-rating dependent on renewed Bitcoin ETF inflows and new altcoin investment vehicles.
