Bitcoin Slides to $115K on Lingering PPI Fears, Ether Under $4.3K
The Bitcoin slides narrative intensified over the weekend as hotter-than-expected US inflation data dragged markets lower. After Friday’s Producer Price Index came in at 3.3% YoY, fears of sticky inflation roiled crypto and equity markets alike.
Headlines proclaiming 'Bitcoin slides' echoed across the digital asset space as BTC dropped below $115,000 by Sunday. Ether followed suit, breaking $4,300 before stabilising. By midday Monday, both assets had staged minor recoveries. Bitcoin is back to $116K, and Ether is flat near $4.3K, but analysts warned the rebound lacked momentum.
FedWatch data reflected the shift in sentiment, with the probability of a September rate cut plunging from 99% to 83%. The focus now turns to Fed Chair Powell’s Jackson Hole speech on Friday, where market participants expect further clues on policy direction amid stubborn inflation.
The inflation-driven volatility comes as traders are already skittish over recent macro softness and rising geopolitical risks. In response, traders have increased two-way flows across risk assets, unwinding leveraged long positions and engaging in opportunistic buying from value-focused funds.
In a testament to long-term conviction, digital asset ETFs kept accumulating. Ether funds led the charge, pulling in $2.8 billion, roughly 77% of the week’s total inflows. Bitcoin ETFs added $552 million. Altogether, global digital asset investment products absorbed $3.75 billion, the fourth-highest weekly total on record.
Despite short-term jitters, ETF demand suggests that institutional players see dips as buying opportunities. “It’s volatility with a purpose,” said one portfolio manager. “The fact that Bitcoin slides don’t deter inflows tells you everything.”
Elsewhere, the DeFi sector has shown signs of decoupling, with key protocols like Lido, Uniswap, and Aave posting stable or even positive returns. Analysts believe the rise in staking yields and token governance activity is making DeFi assets attractive as income-generating instruments.
Meanwhile, corporate treasuries are also making bold moves. Strategy, which already holds over 629,000 BTC, added 430 more coins this week, worth $51 million. Bitmine, meanwhile, expanded its Ether holdings to $6.6 billion, becoming the second-largest ETH-holding firm. The trend highlights a growing divide between public sentiment and enterprise conviction.
As macro pressures mount and volatility rises, the crypto market finds itself at a crossroads. The decline in Bitcoin may persist, but the steady influence of institutional accumulation may also persist. Amid the uncertainty, one truth remains: volatility may shake the surface, but belief in blockchain's long-term value remains firm.
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