Crypto Market Update: Bitcoin Declines as Week Begins, Ethereum Drops Over 5%
August 25, 2025 — Global markets opened Monday’s session with mixed investor sentiment, as key cryptocurrencies started the week on a downtrend. Bitcoin lost ground while Ethereum slid by more than 5%, according to market analysis from XTB Group.
Bitcoin Faces Early Week Sell-Off
Bitcoin (BTC) fell from around $118,000 before the weekend to just below $112,000 in Monday’s trading session. The decline follows a period of profit-taking after Friday’s euphoric rally. Market participants appear cautious as Bitcoin continues to struggle breaking above critical resistance levels.
XTB analysts highlighted that Bitcoin remains in a medium-term uptrend but could not surpass the 50-day exponential moving average (EMA 50), which now acts as a strong resistance barrier. The price currently hovers near the average purchase price of short-term holders, approximately $109,000. This $110,000 zone serves as a crucial support level to watch.
Ethereum Slides Amid Profit-Taking Despite Positive ETF Flows
Ethereum (ETH) experienced a sharper drop, slipping more than 5% to trade below $4,600. This dip comes after reaching multiple new all-time highs late last week. The cryptocurrency is currently moving within a rising price channel, with analysts pointing to a support boundary near $4,100. A break below this level could provoke a more significant correction.
Despite the daily decline, the overall trend for Ethereum remains upward, fueled by ongoing investor confidence. Interestingly, recent Ethereum exchange-traded fund (ETF) inflows have been robust. Ethereum attracted over $300 million in net ETF inflows on the last trading day of the previous week, reflecting bolder investor bets on the asset’s short-term returns.
ETF Activity and Market Sentiment
In contrast to Ethereum, Bitcoin ETF activity has cooled. Last Friday saw net outflows exceeding $20 million, with BlackRock identified as a primary seller during this period. This divergence between Bitcoin and Ethereum ETF flows reveals different investor appetites and market dynamics for the two leading cryptocurrencies.
Market uncertainty persists as reports surface about Bitcoin "whales" – large holders – selling portions of their holdings, adding selling pressure. Moreover, comments from prominent figures such as former Trump advisor Bailey suggest that the broader crypto bear market could still be years away from ending, tempering enthusiasm.
Broader Market Context and Outlook
The crypto market’s early-week weakness coincides with mixed signals from global financial markets. Wall Street futures edged lower while the CBOE Volatility Index (VIX) rose by over 1.5% following last week’s sharp declines. Meanwhile, the U.S. dollar strengthened as investors digested potential Federal Reserve monetary policy directions hinted at during the Jackson Hole Economic Symposium.
Investors will also be monitoring key U.S. economic data releases scheduled for later this week, which could further influence cryptocurrency price movements given their sensitivity to broader macroeconomic conditions.
Important Risk Notice
Trading CFDs (contracts for difference) related to cryptocurrencies involves significant risk due to leverage and market volatility. Approximately 76% of retail investor accounts lose money when trading CFDs with providers such as XTB. Potential investors should carefully assess their understanding of CFDs, their financial situation, and their tolerance for risk before engaging in trading activities.
About XTB Group
XTB Group is a global brokerage with over 20 years of experience in the investment industry, providing access to forex, indices, commodities, stocks, ETFs, and cryptocurrencies through award-winning trading platforms. Based in Warsaw, Poland, XTB offers extensive educational resources, daily market webinars, and market analysis to support traders worldwide.
For additional information, market news, and educational materials, investors can visit XTB’s official website or contact their support team.
Disclaimer: This article is based on a marketing communication by XTB S.A. and does not constitute investment advice or recommendation. Readers should conduct their own research or consult a financial advisor before making investment decisions.