Crypto traders are turning bearish after Bitcoin and Ethereum struggled to maintain recent gains, according to several on-chain metrics.
According to CryptoSlate data, Bitcoin has fallen nearly 7% over the past week, trading at $113,479 as of press time. Ethereum has experienced an even sharper drop, losing 10% in the same time frame and hovering around $4,269.
The decline is not limited to the two most popular digital assets. Other top 10 cryptocurrencies by market capitalization, including Solana, XRP, Dogecoin, and Cardano, have also posted double-digit losses over the past seven days.
The sudden reversal marks a stark change from the bullish optimism that dominated investor sentiment just weeks ago. According to Coinperps data, this has resulted in the Crypto Fear & Greed Index dropping to 52, its lowest level since June.
Additional Aug. 20 data from Santiment corroborates the flaccid market sentiment. The firm pointed out that social media sentiments around Bitcoin had reached their lowest levels since June 22, when geopolitical tensions triggered panic selling.
It added:
“Retail traders have done a complete 180 after Bitcoin has failed to rally and dipped below $113,000.”
Meanwhile, the bearish mood appears to have influenced trading behavior.
CoinGlass data shows that more than 50% of Bitcoin positions are currently short, signaling that most traders expect further price declines. Meanwhile, 48% of traders have maintained active long positions over the past day.
In fact, crypto bettors on prediction platforms like Polymarket increasingly assign a 60% probability that Bitcoin could fall to $111,000 or lower.
Crypto research platform Kronos argued that the market jitters stemmed from concerns over the Federal Reserve’s potential rate cut in September.
According to the firm:
“Powell’s Jackson Hole address remains the key potential pivot [for the crypto market]: dovish language may spark a rebound, hawkish tones could trigger deeper corrections.”
Notably, the rate markets signal a strong chance of easing, with the CME FedWatch data showing the probability at 81%.
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