Bitcoin Slides to Seven‑Week Low Near $109K as ETH Gains Favor

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🔑 Key Takeaways

  • Bitcoin dropped to its lowest level in seven weeks, briefly under $109K.

  • ETF outflows and leveraged liquidations fueled the decline.

  • Ethereum inflows contrast with Bitcoin’s withdrawals, signaling rotation.

  • Market braces for consolidation ahead of September, historically a weak month.

Bitcoin chart falling while Ethereum icon rises in backdrop.

🗞 Main Story

Bitcoin fell to a near seven-week low on August 26, dropping below $109K before stabilizing near $110K. This marks its lowest level since early July, just weeks after hitting record highs of $124K.

A major driver was ETF outflows. Exchange-Traded Funds (ETFs) are investment vehicles that let traditional investors gain Bitcoin exposure through stock exchanges. When ETFs record heavy outflows—over $1B in August alone—it signals waning institutional demand, adding strong downward pressure on BTC.

The decline was worsened by over $900M in liquidations. Liquidation occurs when leveraged trades (using borrowed funds) are forcibly closed by exchanges because collateral runs out. This mechanism amplifies volatility, which explains why Bitcoin fell several thousand dollars in mere minutes.

Meanwhile, Ethereum-linked funds attracted $3.3B in inflows, suggesting a rotation effect. Rotation means capital shifts from one asset class to another—in this case, from BTC into ETH—reflecting confidence in Ethereum’s staking yields, DeFi ecosystems, and Layer-2 growth.

In short, the correction was not just about price—it exposed how ETF sentiment, leverage mechanics, and inter-asset flows shape today’s crypto market.

Crypto coins falling with red arrows and liquidation warning symbols.

🔬 Expert Opinions

  • Sean Dawson (Head of Research, Derive.xyz): “It’s been a bloody start to the week for the majors, with over $900 million in liquidations across crypto markets… The majority came from ETH ($324M) and BTC ($209M).”

  • Rachael Lucas (BTC Markets Analyst): Large holders intensified selling pressure, dragging BTC briefly below $109K and triggering widespread liquidations.

  • Technical Indicators: The 25-delta skew turned negative for BTC and ETH, showing rising demand for downside protection and signaling traders are hedging against further decline.

🌟 Implications

The drop underscores how fragile Bitcoin remains when ETF sentiment turns sour and leveraged bets unwind. Ethereum’s resilience and inflows suggest a narrative shift is underway. September, historically weak for crypto, could either extend the slump or serve as a base for the next rally.

🛬 Sources

  • Bloomberg – “Bitcoin Nears Seven-Week Low as Investors Shift Focus to Ether”

  • Cointelegraph – “Crypto Liquidations Hit $900M as Bitcoin Sheds Jackson Hole Gains”

  • BusinessMirror – “Bitcoin Nears Seven-Week Low as Investors Shift Focus to Ether”

  • Economic Times – “Bitcoin Falls Over 4% in One Week at $110K; Experts Hint at Potential Dip”

  • Barron’s – “Bitcoin, Ethereum, Cardano Drop Again. Why Cryptos Are Slumping”

Split arrows down for BTC, up for ETH, financial chart in background.

📝 Editorial Opinion

A Strategic Pause or the Beginning of a Deeper Pullback?

Bitcoin’s fall below $109K is more than just a technical dip—it reflects deeper structural forces. The drop erased Jackson Hole-driven gains and exposed how fragile leveraged positions remain.

ETF flows are central to this story. BTC funds lost over $1B in August, while ETH products attracted $3B. That’s not mere short-term speculation but a sign of changing investor preference, tied to Ethereum’s evolving fundamentals in staking, DeFi, and scalability.

Derivatives data confirm this caution: skew measures show traders paying more for puts than calls. When downside protection is valued above upside, markets are bracing for turbulence.

Still, historical context suggests that retracements like these often strengthen the market. In 2017 and 2021, BTC corrections of 24–36% eventually set the stage for new all-time highs. What’s different today is the scale of institutional participation and the presence of ETF structures, which may shorten recovery time.

If Bitcoin can stabilize between $109K–$110K, it may reset overheated leverage and prepare for a healthier rally toward year-end. But a break under $105K risks triggering a more pronounced downturn, especially with September’s weak seasonal pattern.

For investors, the key takeaway is patience. Avoid panic, monitor ETF flows, and note that Ethereum’s strength could redefine the balance of crypto’s leadership.

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