Cryptocurrency and blockchain markets traded without major direction on Thursday, with Bitcoin and Ethereum holding within narrow ranges. Activity remained muted as investors looked towards Federal Reserve Chair Jerome Powell’s Jackson Hole address for signals on interest rates and liquidity conditions.
Price action constrained
Bitcoin fluctuated around recent levels, showing little inclination to break higher or lower, while Ethereum mirrored the pattern with similarly tight trading. Market participants noted that volumes across major exchanges were below average, reflecting both summer seasonality and caution before a potentially market-moving policy signal. Other leading tokens, including Solana and XRP, also recorded limited changes.
Macro overshadowing sector news
The absence of significant blockchain-specific developments meant broader macroeconomic forces dominated sentiment. Traders pointed to the resilience of the U.S. dollar and stable Treasury yields as key factors suppressing momentum in digital assets. Risk appetite in global equities has become the primary driver for crypto short-term performance, overshadowing network upgrades or adoption news.
Institutional positioning and flows
Institutional flows into exchange-traded products have slowed in recent weeks, with investors reluctant to commit new capital until the policy direction becomes clearer. Analysts stressed that while structural interest from asset managers remains, near-term caution is prevalent. The correlation between crypto and high-growth technology stocks has also been highlighted, further tying the sector to Wall Street sentiment.
Market commentary
Observers emphasised that the blockchain sector is in a consolidation phase. While underlying adoption of decentralised finance and tokenisation initiatives continues, it is not currently influencing price action. Instead, speculative positioning remains the dominant factor, and traders are closely monitoring leverage levels in derivatives markets for potential catalysts.
Outlook
Market watchers expect volatility to return once Powell speaks in Jackson Hole. A dovish message could weaken the dollar and encourage flows back into riskier assets, providing upside for cryptocurrencies. Conversely, a more cautious tone would likely reinforce the current consolidation and keep prices range-bound. Either outcome is expected to trigger stronger activity, ending the current subdued phase.
REFH – Newshub, 21 August 2025
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