Bitcoin Drops Below $110,000 While ETFs Accumulate

The crypto selloff continued on Tuesday with Bitcoin (BTC) sliding below $110,000, down 2.4% over the past 24 hours and on track for a fourth straight day of losses.

Ryan Lee, analyst at Bitget Research, said the weekend’s flash crash underscored Bitcoin’s “thin liquidity, exacerbated by ETF outflows and declining on-chain activity, exposing vulnerabilities in market depth.”

“Traders should monitor order book depth, futures open interest, and on-chain metrics like Bitcoin Apparent Demand to assess liquidity risks,” Lee said.

Ethereum (ETH) slipped 2.3% to $4,550, even as treasury firms continue to accumulate. SharpLink disclosed Tuesday that it purchased 56,533 ETH last week, raising its holdings to 797,704 ETH and cementing its position as the second-largest ETH treasury company, according to Strategic ETH Reserve data.

Altcoins also faced selling pressure. XRP (XRP) fell 1.2% to $2.94 despite its new partnership with Gemini for a crypto card. BNB (BNB) dropped 2.2% to $851, while Solana (SOL) lost 3.4% to trade at $192.

The total crypto market capitalization declined to approximately $3.89 trillion, representing a 1.4% decrease over the past 24 hours. CoinGlass data indicates that over $786 million in leveraged positions were liquidated during that period, including $268 million in Bitcoin and $258 million in Ethereum.

ETF Flows and Derivatives

Spot Ethereum funds raked in $444 million on Monday, Aug. 25, their biggest single-day haul since Aug. 14, according to SoSoValue. That lifted total assets in the products to $28.8 billion.

Bitcoin funds also snapped their losing streak, pulling in $219 million after a stretch of redemptions that had drained billions. They now hold about $143.6 billion in assets.

The rebound comes as Fundstrat’s Mark Newton — in a market update shared by the head of research at Fundstrat Global, Tom Lee — predicted that ETH could bottom by Wednesday, Aug. 27, and then start climbing again.

He sees the token topping $5,100 and potentially surging toward $5,400, a level he called “meaningful.”

In the meantime, analysts at Glassnode noted in an X post today that long-term Bitcoin holders have already realized “more profit this cycle than in all but one prior cycle” in 2016-2017, highlighting elevated “sell-side pressure.” They added that, taken alongside other signals, this suggests “the market has entered a late phase of the cycle.”

Unprecedented Move

U.S. markets are on edge after President Trump’s attempt to fire Federal Reserve Governor Lisa Cook over alleged mortgage fraud issues. This unprecedented action has raised concerns about the Fed’s independence and left investors uneasy about the direction of U.S. policy.

Following the move, the dollar weakened against major currencies, Reuters reported, while Treasury yields moved in opposite directions, with long-term yields edging higher and short-term rates slipping.

Gold prices rose above $3,370 an ounce, signaling that investors are turning to safe-haven assets amid uncertainty.