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Bitcoin Drops After August Highs, Ethereum ETF Flows Indicate Ongoing Capital Rotation

Bitcoin Drops After August Highs, Ethereum ETF Flows Indicate Ongoing Capital Rotation

Bitcoin hovers at $107,000 as Ethereum ETF inflows signal capital shift toward ETH and altcoins amid market calm.

Written by Rahul Dhingra, Edited by David Delima | Updated: 1 September 2025 13:32 IST

Bitcoin Drops After August Highs, Ethereum ETF Flows Indicate Ongoing Capital Rotation

Photo Credit: Unsplash/Jonathan Borba

Bitcoin consolidates near $107,000 while institutional flows tilt in favour of Ethereum.

Highlights

Bitcoin Holds Steady Near $107,000 Despite Mid-Month Pullback
Ethereum ETFs Lead With $4 Billion Of August Inflows
Solana, Dogecoin, XRP, BNB Show Mixed Momentum Amid Capital Rotation

Bitcoin is currently trading at $107,459 (approximately Rs. 9.78 lakh) and after reaching mid-August highs, it has declined, putting fresh pressure on the cryptocurrency market. This is a reflection of lower investor faith and confidence in digital assets. The data by CoinMarketCap shows that 24-hour performance remains modestly negative. Ethereum trades near $4,378 (roughly Rs. 3.99 lakh). On indian exchanges, Bitcoin is trading at Rs. 94.9 lakh and Ethereum is trading at Rs. 3.86 lakh. BTC ETFs still record inflows at a slower pace.

Institutional Inflows Tilt Toward Ethereum Despite Bitcoin's Consolidation

Altcoins have given nothing but mixed signals, as Solana trades at $197 (roughly ₹17,927), Dogecoin at $0.210 (roughly ₹19), XRP at $2.72 (roughly ₹247), and BNB at $852 (roughly ₹77,532). As per the analysts, ETFs are steering sentiment as capital shifts into Ethereum, while Bitcoin battles volatility, and some altcoins are just catching up as liquidity rotates in the market.

Avinash Shekhar, Co-Founder and CEO of Pi42, said: “The crypto market has entered September on the back foot, with Bitcoin slipping below $108,000 (roughly Rs. 90 lakh) and traders bracing for what many are calling a potential ‘Red September.' On-chain data shows activity cooling and whale movements raising the risk of a sharper slide, with some scenarios pointing toward $105,000–$100,000 (roughly Rs. 87.8 lakh–Rs. 83.6 lakh) if support levels fail.

“Ethereum spot ETFs amassed about $4 billion (roughly Rs. 33,200 crore) in total inflows, while Bitcoin ETFs suffered about $2 billion (roughly Rs. 16,600 crore) in redemptions, signalling a sustained capital rotation toward ETH's staking yield and DeFi prospects,” the CoinSwitch Markets Desk said on Monday.

“Bitcoin is consolidating near $107,600 (roughly Rs. 90 lakh), forming a healthy accumulation zone for long-term investors,” said Edul Patel, CEO of Mudrex. “Despite pressure from whale flows into Ethereum and higher-than-expected US PCE data, investor sentiment remains on the positive side, with rising ‘buy the dip' activity across social channels. A decisive break above $110,200 (roughly Rs. 92.1 lakh) could make way to $114,500 (roughly Rs. 95 lakh),” Patel added.

Meanwhile, the CoinDCX research team also shed some light on the impact on the crypto market. “Bitcoin initiates the weekly trade on a bearish note as the price slides below $108,000 (roughly Rs. 90.2 lakh). The broader crypto market has also been adversely impacted, with the ETH price sliding below $4,500 (roughly Rs. 3.76 lakh),” the team stated.|

Investors are hoping for Bitcoin to hold steady at $106,100 and potentially reclaim its momentum and hover above $110,200 in September. In comparison to Bitcoin, Ethereum's course against BTC will signify a key indicator of institutional confidence. The coming sessions are likely to determine if capital rotation will drive altcoins higher or if Bitcoin will reacquire its dominance.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

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Rahul Dhingra

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Rahul Dhingra is a crypto writer at Gadgets 360, where he covers the exciting world of Cryptocurrency, Blockchain, Defi and Web3. Before joining Gadgets 360, he worked as a content specialist for a European-based Crypto Exchange. Rahul loves storytelling, not just through the written word but also through the visual medium. Beyond his professional life, Rahul is a sports fanatic. Whether it’s cricket or football, his passion for the game is contagious. More