Why the Crypto Market Is Down From the Last Few Days
The crypto market has slipped nearly 9% since Bitcoin’s new all-time high on August 14, 2025. From heavy ETF outflows to U.S. inflation fear and Jackson Hole anxiety, here’s a clear, day-by-day analysis of what really drove the pullback, details and insights you won’t find anywhere else.
On August 14, 2025, Bitcoin reached a new all-time high near $124,500. The excitement was fueled by hopes of interest rate cuts in the U.S. and rising demand from institutional investors. Media outlets like Reuters and Yahoo Finance confirmed the record, and headlines quickly spread among the global community.
But the rally didn’t last long. Just days later, prices began to cool down. Concerns about inflation in the U.S. and nervousness before the Federal Reserve’s Jackson Hole meeting pushed Bitcoin lower. By August 21, Bitcoin was trading near $113,000, about 9% down from the peak.
ETF Outflows Put Pressure on Bitcoin
The main reason for the decline came from U.S. Bitcoin and Ethereum ETFs. These exchange-traded funds have become an important driver of price because they represent big institutional flows.
- On Monday, Aug 18, ETFs saw - $121.7M in Bitcoin outflows and - $196.6M in Ethereum.
- On Tuesday, Aug 19, the selling intensified: - $523.3M in Bitcoin and - $422.2M in Ethereum left the market.
That means nearly $1 billion was pulled out in just two days. This was a major shock for traders and is one reason why prices in Bitcoin Pakistan also reacted with caution.
Global Market Conditions
At the same time, the global economy added extra pressure. Traders were waiting for Jerome Powell’s Jackson Hole speech, and since U.S. inflation data came in hotter than expected, the U.S. dollar gained strength. A stronger dollar usually weighs on risk assets like crypto.
Ethereum’s Small Relief
While Bitcoin held around $113K, Ethereum (ETH) managed to bounce slightly on August 21, gaining 2–3% intraday. But analysts believe this was short-term activity, not a full trend reversal. With ETF outflows still heavy, the market stayed cautious.
Timeline of Events
| Date | Key Event |
|---|---|
| Aug 14 | BTC hits ATH ~ $124K; ETH peaks near $4.8K. |
| Aug 15–17 | Pullback begins after hot PPI & profit-taking pressure. |
| Aug 18–19 | Massive ETF outflows ($523M BTC + $422M ETH). |
| Aug 20–21 | BTC falls ~8–10% total; altcoins show early signs of stabilization. |
| Today | Markets await Powell’s Jackson Hole remarks; BTC around $113–114K. |
Why the Drop Made Sense
Crypto prices move quickly when ETF flows turn negative. Once investors started pulling money from ETFs, buy-side demand disappeared. Combined with inflation worries and a stronger dollar, it was the perfect setup for a pullback.
Where Things Stand for Pakistan
Today, as of Aug 21–22, Bitcoin trades around $113K, still higher compared to earlier in the year, but below the record. Investors in Pakistan’s crypto market are watching closely, especially those interested in Bitcoin news in Pakistan and global trends that can affect local adoption.
What to Watch Next
- Powell’s Jackson Hole speech (Aug 23, PKT): Could either bring relief or extend the pullback.
- ETF flows: If redemptions stop or turn back into inflows, Bitcoin may recover quickly.
- Altcoins in Pakistan: Traders should keep an eye on Ethereum and other majors, as they sometimes lead short-term moves.
For readers following Crypto news in Pakistan, this pullback shows how global flows and U.S. policies directly impact local markets. Whether Bitcoin sets another record or stays in correction will depend heavily on ETF flows and the Fed’s tone.
