Altcoins at a Crossroads: ETH, XRP, SOL React to Bitcoin’s $113K Pause and Rising ETF Redemptions

Bitcoin Slips Below $115K as ETF Outflows, Regulatory Headwinds Pressure Crypto Markets

Bitcoin hovered near $113,700 on Thursday, unable to reclaim the $115,000 level as resistance from the 50-day moving average capped a rebound effort. The broader crypto market added just 1%, reaching a total capitalization of $3.86 trillion, with analysts framing the move as a temporary bounce within a broader downtrend.

“Bitcoin’s failed push above $115K underscores ongoing market fragility, especially as tech stocks struggle,” said FxPro’s chief market analyst, Alex Kuptsikevich.

Data from SoSoValue highlighted sustained institutional caution. Bitcoin ETFs saw net outflows of $523 million on Monday, followed by $311 million on Wednesday and another $192 million on Thursday. Ether ETFs weren’t spared either, recording over $500 million in cumulative outflows over the same three-day period.

Kronos Research pointed to profit-taking and leveraged liquidations following BTC’s all-time highs earlier this month as key drivers behind the outflows.

Regulatory concerns added to the unease. The SEC is reportedly investigating Alt5 Sigma’s $1.5 billion deal with World Liberty Financial, a firm tied to U.S. President Donald Trump. The development has intensified investor anxiety around crypto’s regulatory trajectory.

On-chain activity for Ethereum has also softened. Active wallet addresses have declined 28% since July 30, indicating waning retail participation. ETH was last seen trading at $4,289, up 0.4% on the day but still more than 7% off recent highs.

Other major tokens mirrored this weakness. XRP dropped to $2.87 and Solana to $183, with both falling over 6% this week. While a dovish Fed tone could trigger a short-term bounce, analysts warn that continued outflows and weak fundamentals could limit upside.

In derivatives markets, Bitcoin’s 30-day delta skew spiked to 12%, the highest level in four months, reflecting increased demand for downside protection.

“This weakness is macro-driven, not crypto-native,” said Ruslan Lienkha, chief of markets at YouHodler. “Selling pressure in equities is spilling over into digital assets.”

Lienkha added that it remains uncertain whether recent positioning reflects short-term hedging ahead of Fed Chair Jerome Powell’s speech at Jackson Hole or a more sustained reversal. “The current pullback could either mark the end of the cycle or just be another correction,” he said.

Still, some remain bullish on long-term prospects. Bitwise noted that U.S. pension fund allocations could be a major catalyst, projecting that inflows could push Bitcoin toward $200,000 by year-end — potentially surpassing the impact of spot ETF approvals. First allocations could begin this fall, the firm added.

For now, all eyes are on Powell’s Friday remarks. A dovish tone may ease pressure across risk assets, but any reluctance to support rate cuts could prolong Bitcoin’s 9% retreat from its recent peak.