SCN Crypto Market Deep Dive — August 21, 2025

BTC consolidates below record highs, ETH leadership builds on ETF demand, stablecoins step into the policy spotlight

Snapshot

Bitcoin (BTC) is trading around the mid‑$110Ks after setting a fresh all‑time high above $124K last week; traders are cautious into Jackson Hole. Reuters+1

Ethereum (ETH) continues to outperform BTC on the back of strong spot ETF inflows and growing institutional participation. CoinDeskcoinshares.com

Stablecoins are in focus as policy momentum builds globally, including China weighing yuan‑backed stablecoins—a potential shift with market‑structure implications. Reuters

Macro backdrop: all eyes on the Fed

Crypto is taking its cue from macro. With investors bracing for Fed Chair Powell’s Jackson Hole remarks, risk assets are trading tactically after a volatile two weeks. BTC remains well off last Thursday’s record above $124K, but the trend from earlier in August is still constructive, reflecting favorable regulation and ETF adoption. Reuters+1

SCN view: The near‑term path hinges on tone: a status‑quo message risks “sell‑the‑news,” while clearer easing into year‑end could re‑ignite beta across majors and high‑quality alts.

Bitcoin: from ATH to digestion

Price context: BTC printed a new ATH above $124,000 last week and has since pulled back toward the $114K area as traders de‑risk into the event calendar. Reuters+1

ETF flows: U.S. spot bitcoin ETF flows have turned choppy in August after heavy summer inflows; daily prints show a mix of positive and negative sessions across issuers. farside.co.uk+1

SCN take: Sideways‑to‑down chop is typical after new highs. Sustained on‑chain and ETF demand would be the cue that this is consolidation, not distribution.

Ethereum: leadership on real flows

Spot ETH ETFs notched record monthly inflows (~$5.4B in July) and have continued to attract capital even as some BTC funds saw modest August outflows, per JPMorgan commentary. CoinDesk

Weekly fund‑flow data corroborate the theme: Ethereum drew ~$2.87B of the ~$3.75B into digital‑asset products last week, pushing AUM to a record. coinshares.com

Why it matters: Beyond price, repeated evidence of institutional allocation to ETH—through regulated vehicles—is a durable positive for market structure and liquidity. coinshares.com

Policy watch: stablecoins at center stage

China is considering yuan‑backed stablecoins to advance RMB internationalization—an apparent pivot that could accelerate cross‑border stablecoin usage and competition with dollar‑pegged incumbents. Reuters

Separately, Bank of America notes that rising stablecoin/T‑bill demand and tokenization can pressure money‑market funds, a sign that crypto rails are edging into traditional cash‑management territory. CoinDesk

SCN read‑through: Policy clarity + yield‑bearing stables = structural tailwind for on‑chain liquidity, DeFi, and settlement volumes.

Capital flows & positioning: what institutions are doing

Digital‑asset products pulled in ~$3.75B last week, the 4th‑largest weekly inflow on record; ETH led while SOL and XRP also saw meaningful subscriptions. coinshares.com

Asia’s family offices are boosting crypto allocations, with wealth managers reporting higher volumes and broader adoption—another data point on institutionalization. Reuters

SCN takeaway: Even with near‑term volatility, the buyer base is broadening—from U.S. ETFs to Asian wealth—supporting the medium‑term bull case.

Altcoins & sectors: where the rotation could go next

ETH beta: If the ETH leadership trend persists, higher‑beta L2s and quality DeFi could see catch‑up flows as liquidity rotates down the risk curve. (Flow leadership evidence cited above.) coinshares.com

Payments & stablecoin rails may benefit from policy momentum (China, HK), particularly networks with fiat‑on/off‑ramps and strong compliance footprints. Reuters

What to watch (near term)

Powell @ Jackson Hole — tone on growth/inflation and any hints about the September meeting. coinshares.com

ETF tapes — daily prints for BTC and ETH spot ETFs to gauge dip‑buying vs. profit‑taking. farside.co.uk

Policy headlines — stablecoin frameworks in Asia and U.S. ETF docket updates. Reuters

SCN Bottom Line

Crypto is pausing below record levels as macro takes the wheel. Under the surface, ETH’s institutional bid and rising stablecoin legitimacy are the standout trends. We’d lean barbell: core exposure in BTC/ETH, plus selective themes (L2s, compliant stablecoin rails) into policy catalysts.