Market Jitters as Bitcoin Dips Below $110K
The crypto market experienced a significant pullback on August 29, 2025, with Bitcoin tumbling below the critical $110,000 threshold for the first time in weeks. This downturn wiped out most of the week’s gains and was largely attributed to a combination of profit-taking and fears over persistent inflation data. The market’s volatility highlights a growing divergence between Bitcoin and Ethereum, with institutional interest now clearly favoring the latter.
Bitcoin’s Price Correction Tests Key Support
Bitcoin’s price fell by over 3%, trading as low as $107,800 in the afternoon session. This marked its worst weekly performance since February and its lowest level since early July. The drop has put a spotlight on the $110,000 level, which analysts are watching closely to see if it can hold as a support zone, or if a deeper correction is on the horizon.
Ethereum’s Institutional Momentum Defies Market Downturn
Ethereum showed surprising resilience despite the broader market slump, thanks to massive institutional inflows. Ethereum ETFs are on track to close August with over $4 billion in net inflows, significantly outpacing Bitcoin’s funds which saw over $600 million in outflows for the month. This trend suggests a major rotation of capital and a maturing institutional narrative for Ethereum.
XRP
XRP’s price also declined, following the general market trend and reversing its recent rally. The token’s movement remains highly correlated with major market shifts, highlighting its sensitivity to broader sentiment. Analysts are watching for signs of accumulation from large holders, which could signal a potential rebound. A break below its current support level, however, could lead to further losses.
Cardano (ADA)
Cardano experienced a price dip, falling alongside other altcoins. The token’s price action reflected the market-wide caution, with investors pulling back after a week of mixed performance. The pullback, however, is seen as a healthy consolidation phase before the next potential rally. Its strong fundamentals and ongoing development continue to attract long-term holders despite short-term volatility.
Shiba Inu (SHIB)
Shiba Inu’s price also saw a negative correction, unable to sustain its recent momentum. The token’s high volatility continues to make it a risky play in a challenging market environment. The correction wiped out some of the recent speculative gains, leaving the token vulnerable to further price swings. Its performance is heavily reliant on a positive shift in market sentiment and community-driven catalysts.
Dogecoin (DOGE)
Dogecoin saw a price dip, mirroring the broader market’s cautious sentiment. As a meme coin, its price is heavily influenced by market liquidity and is currently struggling to find a bullish catalyst. The lack of a clear utility or a strong narrative has kept it from outperforming during this period of market downturn. Analysts believe that without a new, compelling narrative, the coin may continue its sideways trading.
A Test of Market Conviction
The market’s sharp reversal on August 29 serves as a crucial test of investor conviction. While Bitcoin faces short-term bearish pressure, Ethereum’s performance, fueled by institutional capital, presents a compelling counter-narrative.
The month’s end will be a critical period, as traders decide whether to buy the dip or prepare for a potential continuation of the downtrend into September.
