Crypto News Today: Bitcoin Slips While Hyperliquid Volume Skyrockets

The cryptocurrency market began the week under pressure as Bitcoin (BTC) slipped back toward $111,500, giving up gains from a brief weekend rally. The rally had been sparked by Fed Chair Jerome Powell’s dovish comments, which hinted at potential rate cuts in September. However, the optimism proved short-lived as broader financial markets shifted into risk-off mode, reflecting investor caution.

One of the clearest signals of this sentiment shift is the persistent outflow from Bitcoin spot ETFs. For the sixth consecutive day, these funds recorded net withdrawals, with a weekly average of $1.17 billion, the highest since late February. This trend suggests that institutional appetite for Bitcoin remains weak, limiting upward momentum and exposing BTC to downside risks.

BTC Technical Indicators Show Bearish Pressure

Bitcoin’s short-term technical outlook remains fragile:

• MACD (Moving Average Convergence Divergence): Bearish crossover on the 4-hour chart, confirming a momentum shift toward sellers.

• RSI (Relative Strength Index): Slipping lower but approaching oversold conditions, which may encourage dip buyers.

• Support levels: $115,000 is a critical threshold; failure to hold could expose BTC to declines toward $110,000.

• Resistance: A decisive move above $120,000 is needed to restore bullish momentum.

In the near term, Bitcoin is caught in a tug-of-war between weak institutional demand and potential retail dip-buying interest, which could trigger relief rallies.

Read Also: Nick Tomaino's BTC Warning: Saylor's Grip Risks Bitcoin's Future

Ethereum Proves More Resilient

While Bitcoin faltered, Ethereum (ETH) demonstrated relative strength. The second-largest cryptocurrency benefited from ETF inflows, highlighting steadier institutional confidence. ETH surged to a record high above $4,955 before retracing below $4,600, underscoring strong demand despite market volatility.

Ethereum’s derivatives market is also signaling bullish sentiment. Both futures and options open interest have reached record highs, suggesting traders are positioning for continued upside. Unlike Bitcoin, Ethereum is enjoying capital inflows that reflect optimism around its network upgrades, DeFi adoption, and institutional interest.

This divergence is reshaping the narrative of Bitcoin vs. Ethereum. While Bitcoin’s dominance as “digital gold” is being challenged by macro headwinds, Ethereum’s role as the backbone of decentralized applications (dApps), smart contracts, and tokenized assets makes it more attractive to investors seeking exposure beyond a single-store-of-value narrative.

Read Also: Ethereum Price Surge: Can ETH Break $5K After New ATH?

XRP Faces Technical Struggles

The performance of XRP stands in stark contrast to Ethereum’s resilience. XRP has fallen below the critical $3.00 support level, which previously served as a psychological and technical anchor for bulls.

Compounding the weakness is a low futures funding rate, signaling a lack of leveraged long positions. This suggests traders are less willing to bet on XRP’s short-term recovery, leaving the token vulnerable to further downside.

With its weakening technical structure, XRP may struggle to regain momentum unless broader market sentiment improves or a catalyst emerges from regulatory or institutional adoption developments.

Read Also: XRP News Today: Mastercard Launch, Price Drop, and SEC vs. Ripple Update

Hyperliquid Emerges as a Trading Powerhouse

In the midst of Bitcoin’s subdued performance, Hyperliquid has captured the spotlight with an unprecedented surge in trading activity. 

The decentralized platform posted a record $3.4 billion in 24-hour spot volume, driven largely by BTC and ETH deposits and active trading on its Hyperunit interface.

• BTC trading volume: $1.5 billion

• Market rank: Second-largest venue for BTC spot trading across centralized and decentralized exchanges

• Technology: Built on HyperCore Layer-1, powered by HyperBFT consensus and HyperEVM for sub-second finality, scalability, and full EVM compatibility

This infrastructure makes Hyperliquid an attractive venue for high-frequency traders and DeFi developers alike. The platform has already established dominance in perpetual futures markets, commanding an estimated 60–70% share among decentralized exchanges.

The latest volume spike strengthens Hyperliquid’s positioning as a key liquidity layer in DeFi. It also enhances the utility of its native HYPE token, which benefits from trading fees funneled into buybacks, a model designed to reinforce value during periods of high activity.

The contrast is striking: while Bitcoin ETFs face sustained outflows, platforms like Hyperliquid are experiencing record inflows of capital and trading activity, suggesting a redirection of market interest toward innovative venues and DeFi-native assets.

Read Also: Flippening Explained: Can Ethereum Overtake Bitcoin Soon?

Bitcoin Dominance Declines as Altcoin Interest Grows

Another important trend is the decline in Bitcoin’s dominance, which has slipped from 60% to 57%. This shift reflects a rotation of capital into Ethereum and altcoins.

• Ethereum futures and options: Record highs in both open interest and volume

• Altcoin futures: Explosive growth in open interest, lifting leverage and volatility across the market

• Market sentiment: “Sell on rally” for Bitcoin, but cautiously bullish for Ethereum and select altcoins

This evolving dynamic is creating a more diversified trading environment, where Ethereum and platforms like Hyperliquid are absorbing attention that historically gravitated toward Bitcoin. 

For investors, the shift signals a maturing market that no longer depends solely on BTC to drive cycles.

Read Also: Bitcoin Dominance Falls Below 60% as Crypto and U.S. Stocks Hit New Highs

Short- and Long-Term Outlook

Near-Term Forecast

Bitcoin may consolidate in the $111,000–$118,000 range, with relief rallies possible if dip buyers step in near oversold conditions. However, continued ETF outflows and weak institutional appetite keep the short-term outlook tilted bearish.

Mid-Term Perspective

Ethereum’s resilience and Hyperliquid’s explosive growth suggest that capital rotation into ETH and altcoins could accelerate. Traders are increasingly positioning for upside in Ethereum, while Bitcoin may struggle to reclaim dominance until ETF flows stabilize.

Long-Term Projections

Analysts maintain long-term optimism for Bitcoin, with forecasts of $120,000–$180,000 by late 2025, contingent on macroeconomic conditions and renewed institutional accumulation. Ethereum and altcoins, however, could outperform if current momentum holds, fueled by DeFi adoption, tokenized finance, and higher network utility.

FAQ

Why did Bitcoin drop to $111,500?

Persistent ETF outflows, weak institutional demand, and risk-off sentiment drove Bitcoin lower despite Powell’s dovish tone.

What’s driving Hyperliquid’s surge in trading volume?

Its advanced Layer-1 infrastructure, high-speed settlement, and strong DeFi positioning pushed 24-hour spot volume to $3.4B, led by BTC and ETH trading.

Is Ethereum stronger than Bitcoin right now?

Yes. Ethereum is benefiting from ETF inflows, record derivatives activity, and bullish sentiment, while Bitcoin faces outflows and bearish technicals.

Why is XRP struggling?

XRP broke below $3.00 support with weak leveraged demand, reflecting fragile technicals and cautious sentiment.

What is the overall crypto market sentiment?

Cautious for Bitcoin, but bullish rotation into Ethereum, altcoins, and DeFi platforms like Hyperliquid indicates growing diversification.

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