Bitcoin and Ethereum Retreat on Profit-Taking While Market Awaits Clarity Ahead of Jackson Hole

Bitcoin (BTC) and Ethereum (ETH) opened the week under pressure, extending a cautious tone across digital assets as investors moved to lock in profits. The soft start follows a relatively calm weekend where Bitcoin traded in a narrow sideways band, before slipping back toward the lower edge of last month’s established trading range.

The retreat comes just days after Bitcoin touched a fresh short-term high, but momentum has since stalled. Data show a wave of long position liquidations across the futures market, underscoring the fragility of sentiment and hinting that further downside risk may persist if support levels fail to hold.

ETF Outflows Sap Market Support

One of the key drivers behind the weaker tone has been reduced flows into crypto-linked exchange-traded funds (ETFs). The sector, which in recent months provided a steady source of demand, has struggled to attract fresh capital.

• Bitcoin ETFs recorded net outflows of USD 14.1 million.

• Ethereum ETFs saw an even sharper pullback, with USD 59.3 million withdrawn.

These outflows have removed a layer of support from the market, with traders closely watching whether inflows resume. A return of strong institutional ETF demand could help BTC and ETH stabilize and reclaim upward momentum. Until then, the lack of fresh buying leaves the market exposed to bouts of volatility.

Long-Term Support from Corporate Treasuries

Despite near-term weakness, longer-term fundamentals show signs of resilience. Corporate treasury allocations to Bitcoin continue to expand, mirroring the early strategy pioneered by firms such as MicroStrategy.

Tokyo-listed Metaplanet announced the purchase of 775 BTC, worth approximately USD 93 million, adding to its growing reserves. Moves like these reflect an increasing willingness by companies to hold Bitcoin as a balance-sheet asset, and they provide an important structural source of demand that could underpin prices during periods of speculative cooling.

Macro Focus: Jackson Hole Ahead

Beyond crypto-specific flows, traders are also attuned to the broader macroeconomic environment. Attention this week is turning to the Jackson Hole Economic Symposium, where central bankers and policymakers are expected to provide fresh insights on the path of monetary policy.

For digital assets, any signals on interest rate trajectories, liquidity conditions, or inflation outlooks could shape near-term price direction. A more hawkish tone from the Federal Reserve could pressure risk assets, including crypto, while dovish signals may reignite appetite for higher-yielding speculative plays.

Outlook

In the near term, both BTC and ETH remain vulnerable as long positions unwind and ETF flows stagnate. Key technical levels at the lower end of the recent trading ranges will be closely watched for signs of resilience. Longer term, however, continued adoption by corporates and the potential for a return of institutional demand provide a supportive backdrop.

For now, the balance of risks appears tilted to the downside, with traders awaiting both macro guidance from Jackson Hole and clearer evidence of renewed ETF inflows before regaining confidence in a sustained rebound.

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