On August 21, 2025, Bitcoin dropped nearly 8% in just seven days, falling from $124,000 to around $113,643. This sharp decline has made traders cautious, especially with upcoming economic updates from the U.S. Federal Reserve.
Meanwhile, Ethereum showed strength, rising 3.36% in 24 hours to trade near $4,299. Other altcoins like BNB, Solana, and Cardano also gained around 4%, signaling a possible market recovery.
Why is Ethereum going up while Bitcoin is falling?
Experts say Ethereum’s short-term rally is driven by renewed investor confidence and technical support levels. Bitcoin, on the other hand, is facing resistance near $114.6K, with key hurdles at $116.7K and $118.2K.
According to Vikram Subburaj, CEO of Giottus, “Flush-outs either accelerate corrections or act as springboards for recovery. Liquidity maps show heavy clusters around $112K and $120K.”
What are experts saying about the crypto market?
Market analysts believe the crypto sector is trying to bounce back. The Crypto Fear & Greed Index has returned to neutral, suggesting that panic selling may be slowing down.
Sathvik Vishwanath, CEO of Unocoin, noted that Bitcoin rebounded to $114,325, showing that dip-buying demand is still strong. However, institutional flows remain weak, with over $520 million in ETF outflows earlier this week.
Federal Reserve Chair Jerome Powell is in a tough spot heading into his Jackson Hole speech this Friday, says Robert Sockin, Citi director and global economist https://t.co/6gWSFBv2uy pic.twitter.com/LGzSy8p4Ij
— Bloomberg TV (@BloombergTV) August 19, 2025
What does Jerome Powell’s speech mean for crypto?
Traders are closely watching Jerome Powell’s Jackson Hole speech scheduled for Friday. Many expect hints about a September rate cut, which could boost risk assets like crypto.
If the Fed signals a dovish stance, Bitcoin may climb toward $116K–$118K. But a hawkish tone could push it back to $112K or lower.
