🌍 Daily Crypto News Update August 21, 2025

The crypto market closed yesterday in the red as investors faced a mix of liquidity shocks, profit-taking, ETF delays, and macroeconomic uncertainty. Here’s the essential recap.

🔹 Liquidity Drain Fuels Correction

Bitcoin, Ethereum, Solana, and XRP all slid as markets digested a $400 billion liquidity withdrawal from the US Treasury General Account. Analysts called this the primary catalyst for risk-off behavior, beyond just anticipation of Jerome Powell’s speech at Jackson Hole.

🔹 Heavy Profit-Taking in Major Coins

Santiment data confirmed that BTC, ETH, and XRP recorded their largest profit-taking wave since December. Retail sentiment flipped pessimistic, often a contrarian indicator that could present a buy-the-dip opportunity once fear subsides.

🔹 Ethereum Retreats After July Rally

• ETH price: $4,133 (~–0.44% daily)

• Earlier in July, Ethereum surged 61%, reaching a 180-day high.

• Now, profit-taking and macro concerns dominate. Traders remain cautious about whether ETH can sustain a push toward $5K in the near term.

🔹 XRP Hit by Security Concerns & ETF Delays

• XRP price: below $3

• A security audit ranked its ledger poorly, raising red flags.

• The SEC delayed ETF approvals until October, fueling institutional sell-offs.

• Combined, these factors triggered heavy repositioning among traders.

🔹 Solana Shows Strength Despite Correction

• SOL price: $180

• Unlike BTC and XRP, Solana posted monthly gains thanks to:

  • Network upgrades

  • ETF product launches

  • Surging on-chain volume

• Analysts believe SOL’s resilience could support another retest of $200 once sentiment recovers.

🔹 Equities Echo Crypto Weakness

Nasdaq and AI stocks also retreated, reflecting skepticism toward AI valuations and earnings potential. This reinforces the broad risk-off mode across both equities and digital assets.

🔹 ETF Inflows Remain Strong

Despite market stress, ETF demand is robust:

• $25B into spot Bitcoin ETFs

• $10B into Ethereum ETFs

• Advisors and retail investors are showing renewed participation, helped by regulatory clarity.

This suggests institutional appetite for crypto remains healthy, even in volatile conditions.

🔹 Markets Await Fed Signals

All eyes are now on Jerome Powell’s Jackson Hole speech.

• Rate cut expectations for September are fading

• Dollar and yields stay muted

• But Fed commentary could still spark volatility across both equities and crypto

📊 Quick Snapshot

💡 Final Takeaway

• BTC, ETH, XRP faced corrections fueled by profit-taking and liquidity concerns.

• XRP was hit hardest by regulatory delays and weak ledger audit results.

• Solana remains a bright spot, supported by real network growth.

• ETF inflows highlight that institutional money is still active.

• Macro signals from the Fed will be the deciding factor for short-term direction.

👉 Ready to position yourself for the next move? Start trading on leading platforms:

• Binance

• Bybit

• Coinbase

• OKX

⚠️ Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always DYOR (Do Your Own Research) before investing.