Crypto Market Update: Bitcoin Pulls Back After New High, Ethereum ETF Inflows Near $3 Billion
August 15, 2025 — After reaching a fresh all-time high on Thursday, Bitcoin (BTC) experienced a slight pullback on Friday, while Ethereum (ETH) exchange-traded funds (ETFs) attracted nearly $3 billion in inflows over the past week, signaling robust investor interest in the second-largest cryptocurrency.
Bitcoin’s Price Movement and Market Drivers
Bitcoin surged to an unprecedented peak of $124,533 on August 14, driven by heightened institutional interest and anticipation of upcoming interest rate cuts from the U.S. Federal Reserve. However, this rally was short-lived. By early Friday, Bitcoin’s price had declined to as low as $117,263, closing the day around $116,999—a 0.8% drop over 24 hours.
Market analysts attributed the pullback primarily to unexpectedly strong U.S. producer price index data for July, which cooled expectations for near-term Federal Reserve rate reductions. Additional unease came from statements by U.S. Treasury Secretary Scott Bessent revealing that the government holds less Bitcoin in reserves than previously thought, further weighing on market sentiment.
Ethereum’s Bullish Momentum and ETF Inflows
Ethereum continued to demonstrate strength, culminating one of its most prosperous weeks this year. On-chain metrics recorded new highs — including daily active addresses, stablecoin transfer volumes, and daily transactions — with decentralized exchange volumes hitting levels unseen since 2022. ETH closed Friday at $4,391.13, down 3.3% from the previous day but still reflecting gains of nearly 19% over the last seven days. This positive momentum coincides with a remarkable surge in Ethereum-focused ETFs, which saw net inflows approaching $3 billion for the week. This figure dwarfs the $562 million inflow recorded by Bitcoin ETFs during the same period.
Data from SoSoValue highlights that major Ethereum treasury holders have ramped up their exposure dramatically, growing from $600 million to $11 billion within six weeks. This surge follows the U.S. Securities and Exchange Commission’s approval of in-kind creations and redemptions for spot Bitcoin and Ethereum ETFs, improvements that make these funds more cost-efficient and attractive for institutional investors.
ETF Store President Nate Geraci noted on social media platform X that three of the four largest single-day inflows ever recorded for Ethereum ETFs occurred just this week, underscoring the swelling investor appetite.
Altcoins Show Mixed Performance
Among other notable cryptocurrencies, Solana (SOL) saw a 4.8% decline, trading at $184.03, while XRP dipped slightly by 0.3% to $3.07. Sui (SUI) fell 2.4% to $3.66, whereas Cardano (ADA) marginally increased by 0.3% to $0.93. Key Crypto Industry Developments
Galaxy Digital Secures Major Loan for AI Data Center
In a significant development, Galaxy Digital (NASDAQ:GLXY) announced securing a $1.4 billion term loan facility to accelerate the construction of its Helios AI data center campus in Texas. The loan, covering about 80% of the initial phase construction costs, complements a $350 million equity investment from Galaxy Digital.
Scheduled to mature on August 15, 2028, the loan is backed by assets from Galaxy Helios I, a subsidiary of Galaxy Digital. This funding supports a power capacity deal expansion with GPU cloud provider CoreWeave (NASDAQ:CRWV) to 800 megawatts, aiming to generate over $1 billion annually in revenue starting early 2026. The Helios campus will ultimately reach 3.5 gigawatts capacity, with significant capacity available for additional clients beyond CoreWeave’s commitment.
U.S. DOJ Seizes $2.8 Million in Crypto Linked to Alleged Ransomware Operator
The U.S. Department of Justice (DOJ) disclosed that it seized over $2.8 million in cryptocurrency, alongside cash and luxury assets, from Ianis Aleksandrovich Antropenko, an alleged ransomware operator. Antropenko faces charges related to computer fraud, abuse, and conspiracy to launder money.
The cryptocurrency was traced to a wallet controlled by Antropenko and was allegedly obscured using a cryptocurrency mixing service called ChipMixer, which was shut down in 2023 as part of an international crackdown on illicit money flows.
New Funding Model Proposed by Michael Saylor
Michael Saylor, executive chairman of Strategy (NASDAQ:MSTR), unveiled plans to raise capital for further Bitcoin acquisitions through issuance of perpetual preferred stocks dubbed “Stretch.” These offerings would not mature and allow dividend deferrals, providing funding flexibility while posing higher risk for investors.
This approach aims to retire existing debt and scale capital raising potentially up to $100 billion, based on investor appetite for yield linked indirectly to Bitcoin’s performance. The move marks a shift from Strategy’s prior focus on common stock sales and convertible bonds.
Federal Reserve Ends Crypto-Specific Supervision Program
The U.S. Federal Reserve Board announced it is sunsetting a specialized supervision program launched in 2023 to oversee crypto-related activities in banks. Going forward, crypto activities will be monitored via the Federal Reserve’s regular supervisory framework. The Fed cited increased understanding of crypto risks as the rationale for integrating oversight back into standard processes.
Hong Kong Securities Regulator Tightens Crypto Custody Rules
Hong Kong’s Securities and Futures Commission (SFC) introduced stricter custody regulations for licensed virtual asset trading platforms. Enhanced requirements include mandatory cold wallet use, greater accountability for senior management, real-time cyber-threat monitoring, and stricter controls on third-party wallet providers.
The move follows an SFC review revealing security gaps among some licensed exchanges and is part of the regulator’s ASPIRe strategy aiming to reduce liquidity fragmentation and regulatory arbitrage while making Hong Kong a safer crypto hub.
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Disclaimer: The authors hold no direct investment interests in any companies mentioned in this article.