A major split is emerging between Bitcoin and Ethereum in the market. Bitcoin is acting as a macro hedge, holding steady around $112,000. Traders are actively positioning for upside in Ethereum, eyeing $5,000. A profound and telling split has fractured the cryptocurrency market. Bitcoin, the long-reigning king, has settled into a stoic holding pattern, a […] The post Crypto update: Why Bitcoin is stalling while Ethereum eyes a breakout appeared first on CoinJournal.A major split is emerging between Bitcoin and Ethereum in the market. Bitcoin is acting as a macro hedge, holding steady around $112,000. Traders are actively positioning for upside in Ethereum, eyeing $5,000. A profound and telling split has fractured the cryptocurrency market. Bitcoin, the long-reigning king, has settled into a stoic holding pattern, a […] The post Crypto update: Why Bitcoin is stalling while Ethereum eyes a breakout appeared first on CoinJournal.

Crypto update: Why Bitcoin is stalling while Ethereum eyes a breakout

2025/09/04 11:29
4 min read
  • A major split is emerging between Bitcoin and Ethereum in the market.
  • Bitcoin is acting as a macro hedge, holding steady around $112,000.
  • Traders are actively positioning for upside in Ethereum, eyeing $5,000.

A profound and telling split has fractured the cryptocurrency market.

Bitcoin, the long-reigning king, has settled into a stoic holding pattern, a defensive fortress against the gathering storms of macroeconomic uncertainty.

But the real action, the aggressive positioning for explosive growth, is happening in a different court.

A great rotation is underway, and traders are increasingly placing their bets on a new champion to lead the charge into September: Ethereum.

The fortress: Bitcoin as a macro hedge

Bitcoin is currently stuck in consolidation, trading near $112,000. But its lack of upward momentum is, paradoxically, part of its emerging narrative.

It is increasingly being treated not as a speculative growth asset, but as a steady macro hedge, a digital counterpart to gold.

This view is being driven by the deep uncertainty emanating from Washington.

In a recent note, QCP Capital wrote that persistent doubts about the Federal Reserve’s independence are keeping risk premiums elevated, a dynamic that weakens the dollar and directly supports hedges like Bitcoin and gold.

The options market tells a similar story of defense.

Flowdesk reported muted implied volatility in Bitcoin, suggesting traders are positioning for stability, not a breakout.

The skew remains negative, meaning puts are expensive—a clear sign that the market is paying a premium for downside protection.

The spearhead: Ethereum as the engine of ascent

While Bitcoin holds the defensive line, Ethereum is being positioned as the market’s spearhead. This is where traders see the real potential for a September breakout.

The data is clear: ETH risk reversals have recovered sharply from their recent selloff, indicating a renewed and aggressive demand for upside exposure.

Prediction markets are validating this theme with real-money bets. Polymarket sentiment shows traders expect Bitcoin to remain capped near $120,000, while giving Ethereum a strong chance of breaking the coveted $5,000 mark.

This view is consistent with its powerful 20 percent rally over the past month and the surging institutional interest being funneled through ETF inflows.

The widening rebellion

This rotation is not just a two-horse race. The renewed appetite for risk is broadening, with capital flowing into a wider array of altcoins. Solana (SOL) options have seen a surge in activity, with flows heavily skewed to the upside.

At the same time, spot activity has rotated into so-called “ETH beta” names like AAVE and AERO, as well as “SOL betas” like RAY and DRIFT.

This is a crucial sign that market breadth is improving, as conviction spreads beyond the majors.

The market is sending a clear, if complex, signal. The macro chaos is reinforcing Bitcoin’s role as a hedge against inflation and institutional decay.

But the momentum, the capital flows, and the speculative energy are all gathering in the court of its challenger.

The stage is set for a fascinating and potentially volatile September, where the fortress and the spearhead will finally have their mettle tested.

Market updates:

BTC: Bitcoin remains in a consolidation phase around the $110,000–$112,000 range, marked by waning short‑term volatility.

ETH: ETH is trading near $4,400. Its rally is being fuelled by surging institutional interest, especially via ETF inflows, and anticipation surrounding the upcoming Fusaka network upgrade.

Gold: Gold is trading around record highs, propelled by expectations of an imminent Federal Reserve rate cut (markets now price in about a 92% chance), weakening confidence in Fed independence, and increased demand from conviction buyers like ETFs and central banks.

The post Crypto update: Why Bitcoin is stalling while Ethereum eyes a breakout appeared first on CoinJournal.

Market Opportunity
Major Logo
Major Price(MAJOR)
$0.08708
$0.08708$0.08708
+4.99%
USD
Major (MAJOR) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Shocking OpenVPP Partnership Claim Draws Urgent Scrutiny

Shocking OpenVPP Partnership Claim Draws Urgent Scrutiny

The post Shocking OpenVPP Partnership Claim Draws Urgent Scrutiny appeared on BitcoinEthereumNews.com. The cryptocurrency world is buzzing with a recent controversy surrounding a bold OpenVPP partnership claim. This week, OpenVPP (OVPP) announced what it presented as a significant collaboration with the U.S. government in the innovative field of energy tokenization. However, this claim quickly drew the sharp eye of on-chain analyst ZachXBT, who highlighted a swift and official rebuttal that has sent ripples through the digital asset community. What Sparked the OpenVPP Partnership Claim Controversy? The core of the issue revolves around OpenVPP’s assertion of a U.S. government partnership. This kind of collaboration would typically be a monumental endorsement for any private cryptocurrency project, especially given the current regulatory climate. Such a partnership could signify a new era of mainstream adoption and legitimacy for energy tokenization initiatives. OpenVPP initially claimed cooperation with the U.S. government. This alleged partnership was said to be in the domain of energy tokenization. The announcement generated considerable interest and discussion online. ZachXBT, known for his diligent on-chain investigations, was quick to flag the development. He brought attention to the fact that U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce had directly addressed the OpenVPP partnership claim. Her response, delivered within hours, was unequivocal and starkly contradicted OpenVPP’s narrative. How Did Regulatory Authorities Respond to the OpenVPP Partnership Claim? Commissioner Hester Peirce’s statement was a crucial turning point in this unfolding story. She clearly stated that the SEC, as an agency, does not engage in partnerships with private cryptocurrency projects. This response effectively dismantled the credibility of OpenVPP’s initial announcement regarding their supposed government collaboration. Peirce’s swift clarification underscores a fundamental principle of regulatory bodies: maintaining impartiality and avoiding endorsements of private entities. Her statement serves as a vital reminder to the crypto community about the official stance of government agencies concerning private ventures. Moreover, ZachXBT’s analysis…
Share
BitcoinEthereumNews2025/09/18 02:13
SEI Technical Analysis Feb 6

SEI Technical Analysis Feb 6

The post SEI Technical Analysis Feb 6 appeared on BitcoinEthereumNews.com. SEI is consolidating at the $0.08 level under general downtrend pressure; although RSI
Share
BitcoinEthereumNews2026/02/07 02:43
South Korean Crypto Exchange Accidentally Gave Away $95 Billion in Bitcoin

South Korean Crypto Exchange Accidentally Gave Away $95 Billion in Bitcoin

The post South Korean Crypto Exchange Accidentally Gave Away $95 Billion in Bitcoin appeared on BitcoinEthereumNews.com. In brief South Korean exchange Bithumb
Share
BitcoinEthereumNews2026/02/07 02:16