Bitcoin selling pressure erupts—is ether the escape hatch?

Is bitcoin's selling pressure signaling deeper trouble ahead? This week’s ether price analysis reveals why investors are rotating into Treasuries as exchange balances hit 15-month highs.

Following the recovery in June 2026, the crypto markets were under pressure entering the final week of the month. According to CoinGecko, the market capitalization shed 134 billion USD from markets at the peak in June until 2 August, with altcoins contributing about 59 billion USD. One of the key contributors is the delayed passage of the CLARITY Act due to the Senate’s holiday season.

Stay in control of your exposure

Watch up to 8 charts on one screen and manage your risk at a glance.

Try Exness Terminal

DATCos add to bitcoin selling pressure

Aside from the delay, the markets were initially optimistic that sales from digital asset treasury companies (DATCos) would be more limited, following the sale of Strategy’s 2,225 BTC holdings and its sufficient cash reserves for dividend repayments. However, the optimism waned amid the lack of positive catalysts. Meanwhile, in early August, Trump Media also sold 2,628 BTC, realizing a significant loss on its holdings. The firm acquired at an average of 118,522 USD per bitcoin, losing nearly half of its investments.

Summary:

Overall, DATCo sales are reinforcing bitcoin selling pressure rather than easing it, despite earlier hopes for limited disposals.

ETF flows: Ether price analysis shows rising trust

Meanwhile, US-listed spot bitcoin and ether ETFs recorded a muted month. Investors added over 172 million USD into bitcoin ETFs, the most muted inflows since inception. At the same time, investors also added nearly 350 million USD to ether ETFs, double the amount of their bitcoin counterparts and the highest monthly inflows since April 2026. 

Bitcoin selling pressure shown as ETF flows with BTC funds experiencing outflows while ether price analysis reveals steady ETH ETF inflows. Source: Farside Investors, accessed on 2 August 2026.

BlackRock ETHA and ETHB investors were the key driver for ether ETFs. However, on the bitcoin ETF front, the situation is more dynamic, with inflows coming from BlackRock IBIT and Grayscale mini BTC, while outflows rose from Fidelity FBTC and Grayscale GBTC.

Some investors seemed to jump into the markets earlier amid the downturn, capitalizing on the yields generated by BlackRock’s ETHB, despite it offering lower yields than other asset classes.

Summary:

In short, ether price analysis shows ETF demand outpacing bitcoin, even as both assets face a muted month overall.

Bitcoin onchain data confirms selling pressure

With the markets depositing over 19.1k BTC, the Total Balance on Exchanges rose to its highest level since April 2025, reaching around 3.324 million BTC, up from around 3.2 million BTC. This condition shows increasing selling intention, with the possibility of capitulation in the markets, especially as they realized more recent losses.

Bitcoin selling pressure intensifies as exchange balances climb to 3.32 million BTC, the highest level in over 15 months, signaling rising capitulation risk. Source: Glassnode, via Exness FMS dashboard, accessed on 02 August 2026.

At the same time, long-term holders (LTHs) also sold off their holdings, pressuring their total positions to the lowest since the end of April 2026. This condition confirms the selling pressure in the markets.

Ether onchain: Price analysis amid fund rotation

Meanwhile, the US Treasury’s recent elevated yields also added pressure to overall markets, including ether, in particular. Since the shift to proof-of-stake on 15 September 2022, investors kept their funds staked in Ethereum, with staking yields ranging from 1.5% to 4.5% Annual Percentage Yield (APY).

Ether price analysis shows Total Value Locked in DeFi holding near March 2024 levels, as capital rotates toward higher-yielding US Treasuries. Source: Glassnode, accessed on 2 August 2026.

Investors seemed to rotate their funds into other assets, including US Treasury bonds, which yield around 3.70 to 5.23% APY. The current US Treasury condition directly competes with ether and Decentralized Finance (DeFi), especially during periods of uncertainty. However, things may shift when the markets see crypto more positively.

Summary:

Overall, elevated Treasury yields are pulling capital away from ether staking and DeFi, adding to broader crypto selling pressure.

Trade crypto on your terms

Trade leading crypto CFDs with fixed leverage at 1:400 and fast execution.

Try free demo

Final thoughts: Bitcoin selling pressure outlook

From my point of view, despite crypto markets having limited downside recently, selling pressure persists, which aligns with my previous writing.

The recent recovery had no fundamental backing, as investors deposited into exchanges, emphasizing their intention to sell and potential for capitulation in the markets.  Aside from that, institutional sales also added to the pressure.

However, some investors have “jumped onto the ether wagon” via BlackRock’s ETHB, allowing them to access the staking yield without the crypto complications.

At the same time, as US Treasury yields remain elevated, market participants are maximizing their funds by capitalizing on current conditions amid crypto weakness and the absence of positive catalysts. 

The lack of positive catalysts may place further pressure on capitulating investors and traders in the near future, especially with elevated energy-driven inflation regimes, and markets expecting more expensive borrowing costs.

Disclaimer: This article is for informational purposes only and is not investment or trading advice. Please do your own research or consult a financial advisor before making investment decisions.