Bitcoin Price Remains Below $120K as Ethereum Hits All-Time High
Bitcoin's price stabilized around $117,000 on August 23, with minimal intraday gains of 3%. In contrast, Ethereum surged over 10% to a new all-time high of $4,900, following dovish comments from Federal Reserve Chair Jerome Powell at the Jackson Hole symposium, indicating potential lower interest rates.
Key highlights:
- Powell noted increased downside risks to employment, suggesting a possible rate cut in September.
- CME Group’s Fed Watch tool indicates a 75% chance of a rate decrease at the upcoming FOMC on September 17, 2025.
- Altcoins like Ethereum, Ripple, Solana, and Cardano posted double-digit gains, surpassing key resistance levels.
- Bitcoin retreated to $115,600 after failing to maintain an intraday peak of $117,370.
Factors Impacting Bitcoin's Performance
- Weak institutional demand among Coinbase traders led to Bitcoin's underperformance. The Coinbase Premium Index dropped to 0.002%, signaling reduced appetite from corporate investors.
- Bitcoin ETFs experienced $23 million in outflows, failing to record any inflows this week, contrasting sharply with Ethereum ETFs, which saw $337 million in net inflows on Friday.
- A significant resistance cluster exists at $117,800, with over $3 billion in short positions incentivizing sell-offs near this level.
Price Forecast
Bitcoin is unlikely to break above $120,000 without new inflows. Expected consolidation may occur between $113,500 support and $118,000 resistance. A close above $118,000 could initiate a short squeeze towards $123,000; however, failure to hold $113,500 might lead to a drop towards $110,000.