{"id":26264,"date":"2025-08-20T10:27:01","date_gmt":"2025-08-20T07:27:01","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=26264"},"modified":"2025-08-22T17:39:59","modified_gmt":"2025-08-22T14:39:59","slug":"bitcoin-and-ethereum-pull-back-ahead-of-fed-chairs-speech","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/bitcoin-and-ethereum-pull-back-ahead-of-fed-chairs-speech\/","title":{"rendered":"Bitcoin and Ethereum pull back ahead of Fed chair\u2019s speech"},"content":{"rendered":"<p>The two largest cryptocurrencies by market value slipped as traders took profits after the recent rally and positioned for key macroeconomic events.<\/p>\n<figure class=\"wp-block-gallery has-nested-images columns-default is-cropped wp-block-gallery-1 is-layout-flex wp-block-gallery-is-layout-flex\">\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"587\" data-id=\"264218\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/ETHUSD_2025-08-20_09-21-13-1024x587.png\" alt=\"ETHUSD_2025-08-20_09-21-13\" class=\"wp-image-264218\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/ETHUSD_2025-08-20_09-21-13-1024x587.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/ETHUSD_2025-08-20_09-21-13-300x172.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/ETHUSD_2025-08-20_09-21-13-768x440.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/ETHUSD_2025-08-20_09-21-13.png 1438w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">15-minute ETH\/USD chart on Binance. Source: <a href=\"https:\/\/www.tradingview.com\/chart\/?symbol=BINANCE%3AETHUSD\">TradingView<\/a>.<\/figcaption><\/figure>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"587\" data-id=\"264219\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/BTCUSD_2025-08-20_09-21-09-1-1024x587.png\" alt=\"BTCUSD_2025-08-20_09-21-09\" class=\"wp-image-264219\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/BTCUSD_2025-08-20_09-21-09-1-1024x587.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/BTCUSD_2025-08-20_09-21-09-1-300x172.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/BTCUSD_2025-08-20_09-21-09-1-768x440.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/BTCUSD_2025-08-20_09-21-09-1.png 1438w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">15-minute BTC\/USD chart on Binance. Source: <a href=\"https:\/\/www.tradingview.com\/chart\/?symbol=BINANCE%3ABTCUSD\">TradingView<\/a>.<\/figcaption><\/figure>\n<\/figure>\n<p>Over the past day, bitcoin fell 1.3% to $113,638, according to <a href=\"https:\/\/www.coingecko.com\/en\/coins\/bitcoin\">CoinGecko<\/a>. It briefly touched $112,647. Ethereum <a href=\"https:\/\/www.coingecko.com\/en\/coins\/ethereum\">slipped<\/a> 1.4% to $4,179.<\/p>\n<p>The crypto Fear &#038; Greed index dropped to 44 \u2014 the lowest since 22 June.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-qw.googleusercontent.com\/docsz\/AD_4nXfm9AWksuh1nm9Y681f2uZRzdENEV_QJTOETl7vpWo7Cbu6eSENf_vpOlL8LDX-kcSZnxIhvvvTyrDib5Dgu4clihmqZbKzi7eUfZ4_W0wT-d16ffNcUIPmcKrlI4wxUZ4kvuCj?key=G01DWkatuqImgYqQBO2Zow\" alt=\"Bitcoin and Ethereum pulled back ahead of the Fed chair\u2019s speech\"\/><figcaption class=\"wp-element-caption\">Source: <a href=\"https:\/\/alternative.me\/crypto\/fear-and-greed-index\/\">Alternative<\/a>.<\/figcaption><\/figure>\n<h2 class=\"wp-block-heading\">Profit-taking and policy expectations<\/h2>\n<p>Kronos Research CIO Vincent Liu <a href=\"https:\/\/www.theblock.co\/post\/367568\/bitcoin-slides-near-113000-ether-4100\">attributed<\/a> the pressure to profit-taking and the unwinding of leveraged positions after <a href=\"https:\/\/forklog.com\/en\/news\/bitcoin-hits-a-record-above-124000\">setting<\/a> a new all-time high earlier this month.<\/p>\n<p>Traders, he said, have moved to the sidelines. The market may consolidate until there is clarity on monetary policy. He called $4,200 a key level for Ethereum: holding it could attract buyers, while a break risks a slide to $3,900.<\/p>\n<p>Investors are focused on the minutes of the July meeting of the <span data-descr=\"Federal Open Market Committee of the US Federal Reserve\" class=\"old_tooltip\">FOMC<\/span> and a speech by the head of the <span data-descr=\"US Federal Reserve System\" class=\"old_tooltip\">Fed<\/span>, Jerome Powell, in Jackson Hole \u2014 on 20 and 22 August, respectively.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cThe most important event in the near term is the Fed chair\u2019s speech,\u201d said Peter Chang, head of research at Presto Research.<\/em><\/p>\n<\/blockquote>\n<p>He added that the market is already pricing a rate cut in September. If the Fed chair\u2019s remarks run counter to that, a sharp correction is likely. A more \u201cdovish\u201d tone could see the market extend gains. According to Chang, recent swings reflect investors positioning for an event with an uncertain outcome.<\/p>\n<h2 class=\"wp-block-heading\">Other factors<\/h2>\n<p>Reports of a US Securities and Exchange Commission investigation added to the downward pressure.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">[ ZOOMER ]<\/p>\n<p>THE SEC IS CURRENTLY INVESTIGATING JON ISAAC, PRESIDENT OF TRUMP&#8217;S $1.5B WORLD LIBERTY VEHICLE \u2014 ALT5 SIGMA, FOR INFLATING EARNINGS AND SELLING SHARES INTO THE PUMP IN TRANSACTIONS INVOLVING ALT5 SIGMA: THE INFORMATION<\/p>\n<p>\u2014 zoomer (@zoomerfied) <a href=\"https:\/\/twitter.com\/zoomerfied\/status\/1957856353537372614?ref_src=twsrc%5Etfw\">August 19, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The regulator is examining the activities of Alt5 Sigma, which struck a $1.5 billion deal with World Liberty Financial. The latter is linked to US President Donald Trump.<\/p>\n<p>Sentiment also soured after the Nasdaq 100 fell 1.5%, following an MIT NANDA <a href=\"https:\/\/fortune.com\/2025\/08\/18\/mit-report-95-percent-generative-ai-pilots-at-companies-failing-cfo\/\">study<\/a> showing low effectiveness of pilot AI projects at 95% of surveyed companies.<\/p>\n<p>Other drags include new 50% US import <a href=\"https:\/\/www.cnbc.com\/2025\/08\/19\/trump-trade-steel-aluminum-tariffs-.html\">tariffs<\/a> on 407 categories of goods containing aluminium and steel. Economists fear supply-chain disruptions and higher consumer prices. Against these risks, UBS <a href=\"https:\/\/www.cnbc.com\/2025\/08\/19\/why-ubs-just-raised-its-gold-forecast-again-.html\">raised<\/a> its gold forecast to $3,700 by September 2026, expecting a weaker dollar and a slowing economy.<\/p>\n<p>Amid the uncertainty, investors have stepped up hedging in derivatives. The 30-day bitcoin options delta skew reached 12% \u2014 a four-month high. Readings above 10% point to pronounced fear among market participants.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-qw.googleusercontent.com\/docsz\/AD_4nXcm_BBEwc7vWPoJHLrs8GBEpJw9a4EvJhbEhw2CLAVXMc49o_qWHYymopONbp1W5TcA118RDFPHN2i-penJBdfrJX_M7jOKaqUs6P4YbwjqEhqMSmIv8Ib_Lga3UCmziA-oaVfECw?key=G01DWkatuqImgYqQBO2Zow\" alt=\"Bitcoin and Ethereum pulled back ahead of the Fed chair\u2019s speech\"\/><figcaption class=\"wp-element-caption\">Source: <a href=\"https:\/\/app.laevitas.ch\/assets\/options\/skew-bf\/btc\/DERIBIT\">laevitas.ch<\/a>.<\/figcaption><\/figure>\n<h2 class=\"wp-block-heading\">A \u201cpredictable pullback\u201d<\/h2>\n<p>CryptoQuant analyst CQ Ben <a href=\"https:\/\/cryptoquant.com\/insights\/quicktake\/68a4a770cc08d07c63df8b44-Dips-Happen-Bitcoin-Weakness-Mirrors-Previous-Cycles-Recovery-on-the-Horizon\">noted<\/a> that bitcoin\u2019s current softness mirrors patterns from past bull markets. A recovery and a return to growth are possible in late September to early October.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-qw.googleusercontent.com\/docsz\/AD_4nXcNB0C83W9bbrGX_6Js6F6v7FbkE6avFqY52T6YN4QkgVCMc1aHg_zUuInwd4P-XUsXMbh-qWVLzRTswB9u0HS8o06FcrcShgHxaV_fYVSXqH6trbPctmM4jp-sE1cP-PA2EgtoHw?key=G01DWkatuqImgYqQBO2Zow\" alt=\"Bitcoin and Ethereum pulled back ahead of the Fed chair\u2019s speech\"\/><figcaption class=\"wp-element-caption\">Source: CryptoQuant.<\/figcaption><\/figure>\n<p>He pointed to data from the past two cycles, where notable weakness in the leading cryptocurrency began roughly 480 days after the halving.<\/p>\n<p>According to this model, the current correction could last another 2\u20134 weeks. Recovery and a subsequent push to fresh highs have historically occurred by the 510th day after the reduction in miners\u2019 rewards.<\/p>\n<h2 class=\"wp-block-heading\">Ether under pressure<\/h2>\n<p>There are 905,767 ETH in the queue to exit staking, while demand stands at just 238,773 ETH. The waiting period is 15 days, after which the funds may reach the open market.<\/p>\n<p>HashKey Capital partner Xu Han <a href=\"https:\/\/decrypt.co\/335938\/ethereum-price-two-week-low-4b-supply-overhang-looms\">cited<\/a> two main reasons for the unlocks:<\/p>\n<ul class=\"wp-block-list\">\n<li>profit-taking \u2014 participants want to lock in gains while Ethereum trades near record highs;<\/li>\n<li>deleveraging \u2014 a recent rise in borrowing rates on Aave has made the strategy less attractive, forcing traders to close positions.<\/li>\n<\/ul>\n<p>Ethereum developer Preston Van Loon noted that the exit-queue mechanism protects the network.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Ethereum&#8217;s validator exit queue has recently hit new highs! Validators wanting to exit Ethereum&#8217;s proof-of-stake consensus must wait over 15 days (approximately 870,000 ETH waiting) to exit.<\/p>\n<p>Why does Ethereum have an exit queue?<br \/>\ud83d\udc47\ud83e\uddf5\ud83d\udc47 <a href=\"https:\/\/t.co\/oO0VJQIMpi\">pic.twitter.com\/oO0VJQIMpi<\/a><\/p>\n<p>\u2014 prestonvanloon.eth (@preston_vanloon) <a href=\"https:\/\/twitter.com\/preston_vanloon\/status\/1956849021706015008?ref_src=twsrc%5Etfw\">August 16, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>It prevents a mass validator exodus during a potential attack on consensus, preserving the network\u2019s economic security at a critical moment.<\/p>\n<p>On-chain indicators are adding to the pressure. Active addresses have fallen 28% from the 30 July peak \u2014 from 841,000 to 600,000. Network growth, which tracks new addresses, dropped by 28% over the same period to 138,000.<\/p>\n<p>B2 Ventures founder Artur Azizov expects Ethereum to consolidate in a $3,900\u2013$4,400 range for now. In his view, investors are awaiting clarity on Fed policy and the trajectory of tech stocks.<\/p>\n<p>Despite a looming $4 billion unlock, Han believes the market can absorb the supply, citing \u201csustained inflows from institutional ETFs and digital-asset treasuries\u201d.<\/p>\n<p>Earlier, Presto Research analysts <a href=\"https:\/\/forklog.com\/en\/news\/presto-labels-bitcoins-record-surge-as-an-inflationary-illusion\">called<\/a> bitcoin\u2019s record rally an \u201cinflationary illusion\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin and ether slipped as traders took profits after a recent rally and positioned for key macroeconomic events.<\/p>\n","protected":false},"author":1,"featured_media":26216,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"Bitcoin and ether fell as profit-taking met macro jitters.","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[18,46,1145],"class_list":["post-26264","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin","tag-ethereum","tag-market-analysis"],"aioseo_notices":[],"amp_enabled":true,"views":"99","promo_type":"1","layout_type":"1","short_excerpt":"Bitcoin and ether fell as profit-taking met macro jitters.","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/26264","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=26264"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/26264\/revisions"}],"predecessor-version":[{"id":26265,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/26264\/revisions\/26265"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/26216"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=26264"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=26264"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=26264"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}