Bitcoin begins the final week of August far from its recent all-time high of $124,128, recorded on August 13. The asset fell to $110,788, its lowest level since July 10, causing concern among market participants. Data from CoinGlass and Ranger Finance reports $832 million liquidated on centralized exchanges and $95 million in liquidated onchain within 24 hours, underscoring how quickly sentiment can reverse.
At the Jackson Hole Symposium last week, Fed Chair Jerome Powell surprised markets with a softer stance than previously expected. His comments ignited a surge in risk assets, including cryptocurrencies. However, the market has retraced most of the move since then as investors weigh upcoming inflation data.
The CoinMarketCap Fear and Greed Index currently sits at 50, down from 53 yesterday and 56 last week. This neutral reading reflects the market’s shifting sentiment following a period of heightened volatility. After a strong rally at the end of last week that pushed the global crypto market cap above $4 trillion, traders now find themselves on edge as Ethereum erases some of their recent gains and Bitcoin falls to multi-week lows.
Solana Benefits from Renewed Momentum
While Bitcoin and Ethereum dominate headlines, Solana has quietly built momentum of its own. Over the past week, $SOL crossed the $200 mark rebounding from $179 just before the Fed Chair’s speech on Friday, supported by strong on-chain activity. Circle minting $1 billion $USDC on Solana, coupled with optimism around ETF filings and a rebound in market sentiment, has fueled increased demand for the token. Currently, $SOL trades for $196 according to CoinMarketCap data.
In the last 7 days, nearly $280 million was bridged from other chains to Solana, including over $155 million from Ethereum alone.
Alongside this bridging activity, Solana decentralized exchanges have recorded a surge in 24-hour trading volumes. Humidfi continues to lead DEX activity on Solana, largely because its pools focus on SOL-USDC pairs. With SOL’s price posting big moves, Humidfi captured most of that volume.
Solana also recorded $12 million in inflows through digital asset investment products, according to the latest Digital Asset Fund Flows Weekly Report by CoinShares. This stands out against broader outflows of $1 billion and $440 million across Bitcoin and Ethereum products respectively.
Investor Positioning Remains Divided
The crypto market currently reflects a mix of caution and optimism. On one hand, investor flows reveal deep skepticism around Bitcoin, with $1 billion in outflows last week alone. On the other hand, Ethereum’s $2.5 billion in month-to-date inflows and Solana’s consistent demand suggest that traders continue to diversify beyond Bitcoin.
The coming days will likely hinge on the U.S. inflation report. A softer reading may revive optimism around rate cuts and restore momentum to crypto assets. Conversely, a hotter print could weigh on sentiment and trigger renewed selling pressure.
What’s Next?
The final stretch of August has opened with uncertainty for digital assets. Bitcoin’s struggles at multi-week lows have placed traders on alert, while Ethereum and Solana provide contrasting stories of resilience and growth. The prospect for Solana looks even brighter as two more treasury companies enter the $SOL accumulation race while another announced a $125 million raise.
With macroeconomic events looming and investor flows diverging, markets remain highly sensitive to news. The next major catalyst will arrive with Friday’s PCE data, which could dictate the trajectory for September’s trading activity.
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