Investors Rotate Into Ether as Bitcoin Momentum Slows; Selective Altcoin Strength Emerges

With Bitcoin demand softening and profit-taking accelerating, investors are reallocating into Ether and a handful of high-conviction altcoins—marking a shift from broad-based rallies to more focused positioning.

Bitcoin (BTC) held steady in Asia on Thursday, rising 1.4% to $114,610 after last week’s decline. However, Ether (ETH) outperformed with a 5.8% rebound to $4,370.73, helping lift the CoinDesk 20 Index 3.5% to 4,078.

According to OKX Singapore CEO Gracie Lin, a rising ETH/BTC ratio signals growing capital preference for Ether over Bitcoin. “This is not a full-fledged altseason,” Lin noted. “It’s a selective rotation into ETH, with macro risks like Jackson Hole and U.S. inflation data on the horizon.”

Data from CryptoQuant shows a sharp cooldown in Bitcoin demand, with estimated acquisition dropping from 174,000 BTC in July to 59,000 BTC now. Spot Bitcoin ETF inflows have also slowed to their weakest level since April.

Meanwhile, profit-taking has intensified. On August 16, whales realized nearly $2 billion in gains, bringing realized profits since July to $74 billion. Analysts now describe the market as entering a “bullish cooldown,” with support seen around the $110,000 level.

Elsewhere, Enflux, a Singapore-based market maker, noted that retail enthusiasm for altcoins has diminished compared to last week. Still, capital continues to flow into strategic names like BNB, which hit a record high, and Hyperliquid, which has shown strong operational momentum.

“This market is shifting toward fundamentals-based selection,” Enflux wrote. “Institutional flows are becoming more targeted, rewarding quality over hype.”

As a result, crypto markets are now defined less by uniform rallies and more by capital concentration in perceived resilience—led by Ether.

Market Highlights

• BTC: Up 1.4% to $114,610. Bitcoin shows limited rebound amid soft ETF demand and heavy profit-taking.
• ETH: Gained 5.8% as traders rotate into majors showing relative strength.
• Gold: UBS lifts Q1 2026 target to $3,600/oz, citing strong demand, macro risk hedging, and central bank buying.
• Equities: Nasdaq fell 0.68%, S&P 500 lost 0.26% as traders shifted away from tech ahead of Jackson Hole.

Notable Developments

• Winklevoss Twins Donate $21M to GOP for 2026 Congressional Races (CoinDesk)
• Crypto Firms Urge UK to Prioritize National Stablecoin Strategy (CNBC)
• BitMEX Co-Founder, Pardoned by Trump, Joins Longevity BioTech Scene (Bloomberg)