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Bitcoin and Ethereum Pull Back After ETF‑Fueled Rally and Large Liquidations

Heavy U.S. spot ETF inflows plus a Treasury long‑bond buyback plan sparked the rally that now hinges on whether spot demand can absorb profit‑taking ahead of the PCE release, Jackson Hole remarks, Sept. 15 CLARITY Act vote.

Overview

  • Bitcoin climbed about 28% over eight days and hit an intraday peak near $81,265 on Tuesday, Aug. 25 before retreating into the roughly $77,000–$79,000 range as traders took profits.
  • Ethereum rose roughly 30% from mid‑August highs to trade above $2,500 and posted overbought daily indicators, with the daily RSI signaling stretched momentum that could invite a pullback.
  • U.S. spot ETFs were a major driver of demand, with on‑chain trackers reporting daily inflows of roughly $336 million for Bitcoin and seven‑day Bitcoin ETF inflows around 26,499 BTC while spot ETH funds logged large weekly inflows.
  • Derivatives amplified moves in both directions: an initial short squeeze forced massive short coverings worth billions and then flipped into concentrated long liquidations of about $324.4 million over 24 hours, roughly $270 million of which hit longs.
  • The market’s next direction depends on whether continued institutional spot buying sustains the move and on key tests such as a weekly Bitcoin close above about $83,000, an Ethereum weekly close above roughly $2,550, and near‑term macro and regulatory catalysts.