Bitcoin and Ether Lose Altitude as Jackson Hole Jitters End Crypto Rally

Crypto markets ended the final week of August on the back foot as renewed fears of tighter U.S. monetary policy cut short a powerful rally in Bitcoin and Ethereum. After briefly trading above the $81,000 mark midweek, Bitcoin lost momentum once Federal Reserve officials delivered a hawkish message at the Jackson Hole symposium in Wyoming, signaling that higher rates could persist for longer. Profit‑taking quickly set in, and by the weekend the price had slipped back into the high‑$70,000 area, leaving the coin lower on the week. Ether followed a similar pattern, easing into the low $2,400s.

Heavy options expiries around the end of the week amplified volatility as traders unwound leveraged positions and reduced risk. Data also showed that flows into spot Bitcoin exchange‑traded funds, which had been positive for nine straight sessions, flipped modestly negative, suggesting that one key pillar of demand temporarily weakened. Even so, most strategists continue to frame the pullback as a healthy correction after outsized gains rather than the start of a new bear phase, pointing to ongoing institutional adoption and the broader macro backdrop as longer‑term supports for the digital asset space.