Crypto Markets Bounce Amid Geopolitical Tensions and Macro Uncertainty

Cryptocurrency markets showed little movement on Wednesday, Aug. 20, as investors balanced recent losses with ongoing geopolitical uncertainty and broader economic concerns.

Bitcoin (BTC) is currently up 0.7% on the day at $114,100, down more than 6% over the past week. Meanwhile, Ethereum (ETH) is currently trading at $4,330, up 4% over the past day but down over 8% on the week.

XRP is trading up 1% over the past 24 hours at $2.95, down 10% over the past week. Solana (SOL) climbed by 4% and is currently trading at $185, bringing its weekly losses below 7%.

The total cryptocurrency market capitalization is up 1% over the past 24 hours to $3.94 trillion, according to CoinGecko. Bitcoin dominance is currently at 57.5% while Ethereum dominance stands at 13.2%.

Over the past 24 hours, around $438 million in crypto positions were liquidated, including $244 million of long positions and $194 million of shorts, per CoinGlass. Ethereum led with more than $179 million in liquidations, followed by Bitcoin at $105 million.

Geopolitical Concerns

The crypto market’s stagnation comes as President Trump concluded his chats with Ukrainian President Zelenskyy and Russian President Putin in the hopes of cementing a cease-fire or peace agreement. However, the outcome of the talks remains unclear.

“Geopolitics are keeping markets on their guard. Developments in the Russia-Ukraine crisis remain uncertain, and any news – whether good or bad – could influence risk appetite,” Nic Puckrin, crypto analyst and founder of Coin Bureau, said in comments shared with The Defiant.

Meanwhile, Przemysław Kral, CEO of European crypto exchange Zondacrypto, told The Defiant that although the broader market dipped this week amid geopolitical concerns, the prospect of an “altcoin autumn” is helping to revive investor sentiment.

“Significant token unlocks in the coming months also present a valuable opportunity, demanding new liquidity,” Kral said. “Without retail inflows, increased supply facing lesser or no demand will exert downward pressure. Though Bitcoin will likely maintain its dominance, opportunities for altcoins will increase and require understanding tokenomics more crucially than ever.”

ETFs

Spot Bitcoin exchange-traded funds (ETFs) experienced $523 million in net outflows on Tuesday, Aug. 19, the third straight day of withdrawals, bringing total outflows for the week to $659 million so far, according to SoSoValue.

Meanwhile, spot ETH ETFs posted nearly $430 million in net outflows on Tuesday, marking the second-largest single-day outflow since their launch in July 2024. Total outflows for the week have reached roughly $686 million.

Jackson Hole

Later this week, all eyes are expected to be on the Federal Reserve’s annual Jackson Hole symposium, where investors hope to gain insight into the central bank’s plans for interest rates.

The outcome could have a major impact on crypto markets, influencing whether Bitcoin posts gains or faces a pullback in the months ahead.

“This week, it is more macroeconomic uncertainty that is driving markets lower rather than crypto-specific factors. The biggest influence is uncertainty on the macroeconomic front,” Puckrin said. “There is much attention to any hint from the Fed, particularly this Friday’s speech at the Jackson Hole symposium in Wyoming… Market sentiment is defensive overall, and the market may stay on edge until the Fed gives greater clarity later this week.”