Bitcoin’s price stalled at around $117,000 on Saturday, Aug 23, with intraday gains capped at just 3%. By contrast, Ethereum (ETH) surged more than 10% to reach a fresh all-time high of $4,900. This move followed dovish comments from Federal Reserve Chair Jerome Powell at the Jackson Hole symposium, signaling lower interest rates.
Powell noted that downside risks to employment have risen, opening the door for a possible rate cut in September. In response, CME Group’s Fed Watch tool shows analysts now pricing in 75% of a rate easing in the next FOMC slated for September 17, 2025.
Altcoins reacted strongly with ETH, Ripple (XRP), Solana (SOL), and Cardano (ADA) all posting double-digit gains in the past 24 hours, consolidating above key resistance levels at $4,750, $3, $200, and $0.90, respectively, at the time of publication.
Bitcoin, however, failed to keep pace, quickly retreating to $115,600, after a rejection from its intraday peak of $117,370. Market metrics highlight three main reasons behind BTC’s underwhelming performance compared to its rivals.
One major factor has been weak institutional demand. Cryptoquant’s Coinbase Premium Index, which measures the difference between Bitcoin prices on Coinbase Pro, dominated by US-based corporate investors and retail-dominated Binance, fell to 0.002%, its lowest since Aug. 1.
When this metric trends negative or near-zero, it signals that corporate investors are showing little appetite, leaving retail traders to drive market activity. The 21-day low reading on Fridays suggested that while retail participation was strong, whale buyers in the U.S. remained hesitant.
This cautious stance among institutions has weighed heavily on Bitcoin’s ability to push higher against its layer-1 rivals.
ETF flows this week further emphasized investor preferences, sidelining Bitcoin. According to Farside Investors, Bitcoin funds recorded $23 million in outflows on Friday.
This meant that the Bitcoin ETF failed to register a single day of net inflows this week, shedding $1.2 billion as withdrawals exceeded deposits in six consecutive trading days dating back to Aug. 15.
In contrast, Ethereum ETFs pulled in $337 million in net inflows on Friday after taking in $287 million on Thursday.
This divergence highlights how investor capital rotated toward Ethereum and other altcoins following Powell’s remarks, leaving Bitcoin sidelined in the rally. Without ETF inflows to support upward pressure, BTC’s upside trajectory was inevitably capped.