Cryptocurrency Market Sees Turbulence as Bitcoin Drops, Ether Holds Steady

By Omkar Godbole (times are ET unless stated otherwise) Major cryptocurrencies continue to experience market fluctuations, with bitcoin retreating to $113,600 after reaching $114,800 late Wednesday. Ether and most major tokens also erased overnight gains as derivatives traders sought downside protection ahead of Federal Reserve Chair Jerome Powell’s highly anticipated speech at the Jackson Hole Symposium on Friday. Long-term sentiment for bitcoin has turned bearish for the first time since June 2023, according to an options market indicator. Technical signals also indicate a weakening short-term outlook for the cryptocurrency. Notably, an OG wallet sold 660 BTC and opened long positions in ether worth $295 million across four wallets, reflecting a growing preference for ETH over bitcoin. This trend is also seen in derivatives markets. Concerns over bitcoin’s decentralization have increased after a popular X account, "WhaleWire", revealed that two mining pools, Foundry USA and Antpool, now control over 50% of the network’s hashrate. This follows Qubic's recent claim that it was able to make a 51% attack on Monero and planned an attempt on Dogecoin. Financial services platform Swan pointed out that market confidence was shaken by recent guidance from bitcoin holder Strategy, which said it may issue equity to pay debt interest, fund preferred dividends, or when deemed advantageous. Swan urged investors to focus on Strategy’s $73 billion in BTC holdings and strong balance sheet, suggesting the company could cover dividend obligations for decades even if bitcoin’s price fell more than 50%. According to Swan, this is "hardly the picture of imminent collapse". Rapper Kanye West launched a memecoin called YZY, which briefly reached a $3 billion market cap before dropping back below $1 billion. This rapid surge and fall contrast with previous celebrity tokens like TRUMP and MELANIA, which held their hype for a day or two before crashing, indicating a decline in appetite for speculative tokens. In traditional markets, the yield on Japanese government bonds continued to rise, increasing the risk of injecting volatility into global financial markets. Key Events to Watch: Token Events Conferences The CoinDesk Policy & Regulation conference is a one-day boutique event held in Washington on Sept. 10, allowing general counsels, compliance officers, and regulatory executives to meet with public officials responsible for crypto legislation and regulatory oversight. Space is limited, and attendees can use code CDB10 for 10% off their registration through Aug. 31.