Cryptocurrency prices roundtripped over the weekend to erase their rally following Federal Reserve Chair Jerome Powell's speech at the Jackson Hole Economic Symposium on Friday. In the process, Ethereum on Sunday powered to a record high.
Bitcoin and cryptocurrency prices rallied Friday after Fed Chair Powell, during his comments at the Jackson Hole Economic Policy Symposium, opened the door to possible rate cuts beginning with the Fed's September meeting.
Bitcoin on Friday surged near $117,200 following the speech, from around $112,000 ahead of Powell's comments. Ethereum by Sunday hit a record $4,954, after reaching a new high Friday, to surpass its previous all-time peak near $4,891 from November 2021.
However, bitcoin retreated near $110,500 by Monday afternoon, paring its 2025 gains to around 18%. Ether fell back to $4,400, but is still up more than 31% so far this year.
The cryptocurrency prices reversed quickly Sunday in a "flash crash" after a bitcoin whale offloaded 24,000 bitcoin, according to reports from CoinDesk. The move reportedly sparked forced liquidations throughout the broader market. Bitcoin positions saw $273 million liquidated over the past 24 hours, according to CoinGlass data. ETH positions recorded $296 million in liquidations during that period. Overall, crypto liquidations have reached $838 million over the past 24 hours.
"Bitcoin is under pressure to start the week. The decline reflects renewed demand for the U.S. dollar, softer equity futures, and possibly profit-taking after weekend volatility," Joel Kruger, market strategist at LMAX Group told IBD. Kruger noted that a large bitcoin whale offloaded some holdings, which reportedly sparked a flash crash on Sunday.
Ethereum has followed a similar trajectory as investors lock in recent gains after ETH squeaked out a record high, he said.
"Despite the short-term pullback, institutional conviction remains strong, with ETF inflows and corporate treasury allocations continuing to support long-term appeal," Kruger said. He expects markets will remained focused on the Fed's next moves, as Powell's nuance and less dovish undertone left markets jittery despite the rate cut hint.
"In short, the crypto market is grappling with macro pressures — shifting Fed signals, dollar strength, and risk reduction — while structural tailwinds from institutional engagement and adoption continue to hold," Kruger said.
LMAX's outlook remains "highly constructive," he said. "As long as bitcoin holds above $110k on a weekly close basis, we expect the market to hold well into the dips," according to Kruger.
Meanwhile, spot bitcoin ETFs recorded six consecutive days of outflows through Friday, which totaled $1.19 billion, according to Farside Investors data. Spot ethereum ETFs saw four straight days of outflows totaling $925.7 million, which ended on Wednesday. Ethereum ETFs on Thursday and Friday saw $625.3 million in inflows.
Cryptocurrency Stocks
Coinbase stock slumped 4.3% Monday. Shares of the crypto exchange jumped 6.5% Friday following Powell's speech.
The iShares Ethereum Trust ETF and other ethereum ETFs retreated 8.6% Monday. Shares of the ETFs spiked more than 14% Friday.
The iShares Bitcoin Trust ETF fell 5%, along with other spot bitcoin ETFs on Monday. The group erased its 4% gain from Friday.
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