- Bitcoin ETF saw its first-ever event, a net leak of $751 million in August.
- Ethereum ETF absorbed a massive net inflow of $3.9 billion in August.
- BTC prices are below the main short-term holder cost base level.
A stunning and unprecedented reversal has rattled the foundations of the cryptocurrency market.
For the first time since its blessed launch, the currents at facilities that carried Bitcoin to record highs have revolved, causing Spot ETF to bleed hundreds of millions of dollars in August.
At the same time, a powerful, quiet flow of capital flows into Ethereum, marking the potential changes in security guards and the beginning of a major rotational story that can define the year.
The scale of divergence is strict. In August, weeks after they powered their assets to an all-time high of $124,000, Bitcoin spot funds surprised $751 million with net outflows.
That same time, the Ethereum ETF quietly absorbed an astounding $3.9 billion. This is a deep reversal of the role that suggests that institutional investors may be recalibrating their crypto exposures fundamentally.
Bitcoin's Vulnerable Foundation
The pain of Bitcoin is not just ETF flow data. It is etched into the blockchain itself. A recent report from Analytics Firm GlassNode illustrates a market that slips from happiness to deep vulnerability.
The analysis shows that Bitcoin prices are below the cost base for both one- and three-month holders. This is a critical development that leaves a huge cohort of recent investors underwater, dramatically increasing the risk of deeper panic-driven divestitures.
If prices continue to fall below the six-month cost base of nearly $107,000, GlassNode warns it could accelerate losses to the support zone of $93,000 to $95,000, a dense cluster of accumulation by long-term holders.
The forecast market reflects this cautious sentiment.
Polymarket traders assign a 65% chance that Bitcoin will reconsider $100,000 before repaying $130,000.
Ethereum: Quiet Ballast
While Bitcoin is waning, Ethereum has emerged as a quiet, powerful source of stability. That ETF influx is very consistent, with 10 positive net subscriptions in the past 12 months.
The $3.9 billion haul in August is the engine behind an impressive 25% increase in tokens over the past 30 days, and a stunning outperformance during the brutal market-wide revisions.
The beliefs behind the rise of Ethereum are solid. Polymet traders have seen odds above 90% of assets above $3,800 in early September, and long-term bets could potentially close 2025 by 71%, surpassing the coveted $5,000 mark.
As the institutional trend of Bitcoin flows, stable bids for Ethereum are becoming the new anchor of the market. The big spins may be in the early stages, but the signs are unmistakable.
A new power dynamic is shaped and the battle against the Crypto throne is just beginning.
