As Risk Aversion Persists, Bitcoin Tests $115K Floor While Solana and Dogecoin Gain Ground

Bitcoin Slides Under $115K as Altcoin Momentum Fades and ETF Outflows Deepen

Bitcoin remains under pressure this week, struggling to reclaim the $115,000 mark as risk-off sentiment continues to weigh on crypto markets. With institutional inflows slowing and macro headwinds mounting, traders are increasingly rotating away from altcoins and seeking safety in high-liquidity majors—or stepping to the sidelines altogether.

As of Tuesday afternoon in Asia, BTC hovered around $114,200, essentially flat on the day. The asset is still nursing losses from the weekend’s sharp selloff, which erased nearly $6,000 from recent highs and triggered over $1 billion in leveraged long liquidations.

Ethereum Outperforms, but Broader Market Cools

Ether (ETH) showed some resilience, rebounding to $3,650 after briefly dipping below $3,550. Despite market-wide caution, ETH appears supported by institutional demand tied to staking yield, treasury allocation strategies, and continued tokenization interest.

“Ethereum has already retraced most of its weekly dip,” said Nick Ruck, director at LVRG Research. “We continue to see demand from funds looking to gain exposure to Ethereum’s ecosystem fundamentals, IPO activity, and staking returns.”

Altcoin Rotation Unwinds as “Altseason” Narrative Weakens

Hopes for a full-fledged altcoin breakout are fading fast. Solana (SOL) has dropped nearly 20% from recent highs, while XRP has stalled around $2.98. With volatility compressing and liquidity thinning across smaller-cap names, traders appear to be de-risking and consolidating positions in BTC and ETH.

The unwinding of speculative positioning reflects a growing sense of caution, particularly ahead of key macro and regulatory catalysts.

ETF Outflows Signal Institutional Hesitation

ETF activity adds further pressure. Friday marked the second-largest outflow day for bitcoin spot ETFs and the fourth-largest for ether ETFs. Those exits have undercut the idea that institutional flows would offer a stabilizing force in times of market stress.

With ETF demand stalling and spot volume thinning, crypto markets are now missing the momentum drivers that fueled earlier gains.

Derivatives Market Remains Constructive

Despite the weakness in spot markets, some derivatives traders are positioning for a rebound. In a Monday client note, QCP Capital framed the recent pullback as a “correction, not capitulation,” citing growing interest in BTC call structures, including 29AUG25 fly spreads targeting $124,000.

Put skew remains elevated but controlled, suggesting protection rather than panic. According to QCP, a clean break above $115K, supported by renewed ETF flows and declining implied volatility, could quickly re-ignite bullish momentum.

Looking Ahead

Market participants are watching ETF flow data, macroeconomic developments, and volatility indicators to assess where the next move could come from. While sentiment remains cautious, a rebound in institutional participation or easing macro stress could shift the tone.

Until then, the market appears trapped in a consolidation phase—Bitcoin stuck below key levels, altcoins losing steam, and traders staying cautious as the next catalyst looms.