Bitcoin attempts a recovery amid swift return of buyers

20 August 2025

Written by Samer Hasn, Senior Market Analyst at XS.com

Bitcoin is edging higher today, attempting to reclaim the $114,000 level after suffering steep losses of more than 3% yesterday. Alternative cryptocurrencies are rebounding at a faster pace, with Ethereum rising by nearly 4% after briefly dipping toward the $4,000 mark during the early hours of today’s declines.

Today’s crypto gains come amid a swift return of buyers attempting to regain control after prices hit key demand zones. Both Bitcoin and Ethereum remain steady within crucial areas that represent clusters of buyers who view current levels as a potential inflection point for resuming the upward trend.

This has already been reflected in the futures market. According to CoinGlass data, the open-interest- weighted funding rate for Bitcoin futures climbed to its highest level since last Saturday. A similar move was seen in Ethereum, where the rate reached its highest since last Thursday before slipping again despite the price recovery. Buyers also appear to be regaining dominance over sellers, with the long-to-short ratio for Bitcoin and Ethereum futures reaching its highest level since August 12.

However, reclaiming bullish momentum could be particularly risky this week. Broader equity markets are leaning lower amid concerns over stretched valuations, especially in technology stocks. Fears are growing that the recent rally has been too fast or premature, and that this momentum faces a decisive test when Jerome Powell speaks at Jackson Hole this week, according to Bloomberg. The broader crypto market typically does not move in isolation from equities, as both share the same risk appetite that drives momentum across the two asset classes.

Powell’s remarks may prove highly significant for financial markets in general, and for cryptocurrencies in particular this time. On the monetary front, markets will look for his perspective on inflation figures and recent trade developments, which could reinforce expectations about the pace of interest rate cuts for the remainder of this year. So far, markets assign only a 38% probability of a 75-basis-point reduction by year-end, with the more likely scenario being a half-point cut, according to the CME FedWatch Tool.

As for cryptocurrencies specifically, the symposium is set to carry the title Wyoming Blockchain Symposium. This means the discussion will not only focus on monetary policy but also on the future integration of crypto with the economy and financial markets. The event will feature the attendance of President Donald Trump’s son Eric, alongside the newly appointed, pro-Trump chair of the Securities and Exchange Commission.

The Financial Times quoted one attendee saying the event is about “The event is all about how to marry Nasdaq vehicles with tokens to maximise treasury strategies,” referring to the growing number of companies accumulating Bitcoin in a similar fashion to Michael Saylor through his company Strategy. While such business models inherently carry significant risk, they nonetheless have the potential to fuel bullish momentum in the near term.

 

Zaid Barem / ymm