Bitcoin fell to its lowest level in nearly seven weeks, retreating from the record highs set in mid-August. The largest cryptocurrency dropped as much as 0.8% to US$108,719 in early Asia trading on Tuesday, briefly slipping below its 100-day moving average before recovering slightly, according to Bloomberg data.
Meanwhile, Ether has emerged as the preferred digital asset for traders after hitting an all-time high of US$4,955 on Sunday. Although it has pulled back somewhat since the weekend, investors are increasingly betting on further gains for the second-largest token.
The shift in investor sentiment is evident in exchange-traded fund flows. In August, US Bitcoin ETFs recorded over US$1 billion in net withdrawals, while Ether-linked funds drew inflows of US$3.3 billion, signalling a rotation in favour of Ether.
Sean Dawson, head of research at Derive.xyz, said, “It’s been a bloody start to the week for the majors, with over US$900 million in liquidations across crypto markets. The majority came from ETH (US$324 million) and BTC (US$209 million), and nearly all were long positions forced underwater after a broad-based correction.”
Derivatives data also indicate growing caution among traders. Dawson noted that the 25-delta skew, a measure of whether traders are paying more for downside protection than upside exposure, has turned negative for both Bitcoin and Ether. This points to stronger demand for put options, suggesting that investors are bracing for potential retests of US$100,000 for Bitcoin and US$4,000 for Ether.
As of 7.24 am London time on Tuesday, Bitcoin was trading at US$110,095 and Ether at US$4,420.
Bloomberg
