Fed’s policy shift, $4.8B options expiry, and whale moves define the week in crypto
The week of August 16–23, 2025 delivered significant developments for the cryptocurrency market, with Bitcoin consolidating near $116,000 and Ethereum breaking into new all-time highs above $4,800. From central bank signals to institutional rotations, traders navigated a mix of volatility and optimism.
Federal Reserve Boosts Market Sentiment
Markets gained momentum after Federal Reserve Chair Jerome Powell hinted at possible interest rate cuts during the Jackson Hole Symposium. This dovish tone sparked renewed interest in risk assets.
Bitcoin rose 3.5% to trade around $115,575, while Ethereum surged more than 12%, touching $4,879 before closing near $4,717. One strategist noted, “Lower rates directly improve liquidity, and crypto historically responds quickly to such macro signals.”
Options Expiry Fuels Volatility
On August 22, the expiration of $4.8 billion in Bitcoin and Ethereum options contracts heightened volatility. The key “max pain” levels were $118,000 for BTC and $4,284 for ETH. Despite the shake-up, both assets held strong, reflecting underlying bullish momentum.
Ethereum Attracts Institutional Capital
A striking trend this week was the rotation of capital from Bitcoin to Ethereum. A long-dormant wallet liquidated over 100,000 BTC and purchased nearly 63,000 ETH, alongside opening more than 135,000 ETH derivative longs. Another whale shifted 2,520 BTC into ETH, reinforcing institutional demand.
As a result, Bitcoin’s market dominance slipped below 60%, its lowest in over a year. “Ethereum is increasingly seen as the institutional choice,” one analyst explained, underlining the network’s utility and growing ETF inflows.
Altcoins and Regulation in Focus
Beyond the top two, XRP and Litecoin showed muted performance, while emerging tokens like Remittix posted outsized gains. Meanwhile, the launch of Kanye West’s YZY meme coin on Solana intensified regulatory discussions. In India, a bomb hoax tied to a $2,000 Ethereum extortion demand underscored ongoing concerns about crypto misuse.
Weekly Outlook
With Bitcoin trading near $115,974 and Ethereum steady above $4,700, analysts remain divided. Some project Bitcoin could climb toward $200,000 within a year, while others see near-term resistance around $150,000. Ethereum’s trajectory appears stronger, with year-end targets near $10,000 gaining traction.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.