Bitcoin USD Faces Strain as Major Investors Transition to Ethereum: What Awaits?
Following a period of lackluster performance against BTC USD, ETH crypto is now attracting attention. It has shown resilience in the face of selling pressure, and despite the letdown in H1 2025, the token is nearing 2021 peak levels. Currently, ETH USD is trading over $4,500 after a spike to more than $4,900 over the weekend. While prices have been rejected and decreased to present levels, the upward trend persists.
Analyzing the daily chart, Bitcoin USD has established significant base level close to the $110,000 mark. The recent drop occurring today is a continuation of the sell-off seen on August 24, when sellers completely reversed the gains from August 22. From a technical perspective, as long as BTC USD remains below $118,000, the bears long-term holding control, and they could push below $110,000 as part of a prevailing bear trend, reaffirming losses from August 14.
(Source: TradingView)
On the other hand, Ethereum USD bulls are feeling positive. According to Coingecko data, Ethereum crypto has risen by 22% over the last month and an outstanding 67% in the past year of trading. Despite Bitcoin’s pullback over the weekend, ETHUSDT has increased nearly 8% in the past week.
From a technical standpoint, the gains from August 22 shape the recent price action. Buyers maintain the advantage as long as prices stay above $4,200, the low of August 22. Should $4,900 be surpassed, ETH USD could enter uncharted territory, potentially establishing a strong base for a rise to $10,000.
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Bitcoin Bulls Lead as Market fluidity Diminishes
While Ethereum investors feel confident, traders should remain cautious, noting Bitcoin’s significant crypto market dominance. As of August 25, Bitcoin accounts for 56% of the entire crypto market, while Ethereum crypto has grown to 14%. This substantial crypto market dominance indicates that if Bitcoin were to fall below critical price floor levels like $110,000, it could negatively impact other altcoins, including some of the top Solana meme coins.
The situation appears challenging for BTC. As reported by Glassnode on August 25, all Bitcoin groups, ranging from small retail investors to whales, are in a distribution phase, either selling or preparing to sell. Analysts highlight that those holding between 10 and 100 Bitcoin are particularly active in this trend.
(Source: Glassnode via X)
Various factors, such as profit-taking following the recent ascent to record all-time highs, may contribute to this widespread price drop. Economic uncertainties, including weakening labor markets and rising inflation, are valid concerns. Although the Federal Reserve might consider cutting rates in September, Bitcoin USD could experience significant selling pressure from holders in the near term.
As holders continue to sell, onchain data reveals a decline in BTC liquidity. The Spent Volume metric, representing the daily value of Bitcoin transactions, is diminishing, averaging 529,000 Bitcoin over the last week. This reduction indicates that downward momentum might lessen, although analysts urge traders to approach with caution.
GM!
Spent Volume (Bitcoin)- the total volume of coins spent per day. This metric reflects liquidity flow, but remains sensitive to internal transfers by exchanges and services. This week, its average value dropped to a low of 529K Bitcoin per day.
This indicates that the… pic.twitter.com/h390vBjFCj
— Axel
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Shift Towards Ethereum: An Advantage for Ethereum USD?
In addition to the decline in liquidity, significant sellers are active across major exchanges. An analyst points out that many of these sellers seem unaware of time-weighted average price (TWAP) strategies, which contributes to increased market fluctuation.
It’s a bit concerning that large sellers are appearing on exchanges who don’t seem to know about TWAP.
Overall, CEX Netflow is still positive, but it’s nearing the stage where sellers will outnumber buyers.
Now would be an opportune moment for Saylor & Co. to take action… pic.twitter.com/nOxmf8eVDw— Axel
The net flow to exchanges remains positive, which is bearish for BTC ▼-2.69% as more coins deposited at exchanges are more likely to be sold for cash or for top-tier altcoins, primarily Ethereum and other best cryptos to buy.
Recent analysis indicates that more institutions are moving towards ETH. Last week, Bitmine, the ETH Treasury Company managed by Tom Lee, a well-known BTC proponent, acquired $2.2 billion worth of Ethereum, bringing its total holdings to over 1.71 million Ethereum and 192 BTC.
“If you possess $ETH and consent to stake it and validate transactions, you receive the locking tokens fee, set at 3%.”
He intends to utilize the earnings to provide BitMine holders with cash dividends.… pic.twitter.com/DrLMAJ3Fgl
— CryptosRus (@CryptosR_Us) August 22, 2025
According to Lee, due to this considerable accumulation, Bitmine generates over $200 million in net revenue from its locking tokens.
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BTC USD Declines as Ethereum Rises: Will ETH USD Exceed $5K?
- Bitcoin USD remains near $110,000 price floor
- Ethereum USD has increased 22% within a month, trading over $4,500
- Bitcoin holders looking to liquidate Bitcoin
- Bitmine procured $2.2 billion of Ethereum last week
The post Bitcoin USD Feels the Pressure as Big Players Shift to Ethereum: What’s Next? appeared first on 99Bitcoins.
