The week from August 18 to 24, 2025 guarantees to be decisive for the monetary markets and significantly for the crypto sector. Between the Jackson Gap symposium, macro knowledge from the UK and Canada, file flows on Bitcoin and Ethereum ETFs, and on-chain actions, traders are getting ready for days of excessive volatility.
Jackson Gap: all eyes on Jerome Powell, the crypto market awaits
The spotlight would be the speech by Jerome Powell, chairman of the Federal Reserve, on the Jackson Gap symposium on August 23 at 04:00 CEST.
The markets are ready for indicators on the trajectory of US financial coverage:
- A restrictive tone (persistent inflation, excessive charges for longer) would strengthen the US greenback and will penalize dangerous belongings like Bitcoin (BTC) and Ethereum (ETH).
- Quite the opposite, a extra dovish speech would pave the best way for charge cuts and would enhance crypto and shares.
Traditionally, Powell’s speeches at Jackson Gap have all the time triggered robust actions in currencies and world markets. 2025 might be no exception.
Inflation and geopolitics: UK, Canada, and Ukraine within the highlight
On August 20, knowledge on UK inflation (anticipated at 3.6% YoY) and on the Canadian CPI (forecasted at 2%) might be launched.
These numbers will weigh on the choices of Financial institution of England and Financial institution of Canada:
- Larger inflation = extra aggressive central banks.
- Decrease inflation = room for accommodative insurance policies.
On the geopolitical entrance, the summit on August 18 between Donald Trump and Volodymyr Zelenskiy in Washington may change the worldwide sentiment. A truce in Ukraine would give oxygen to the markets; new tensions may threat pushing up vitality, currencies, and crypto.
Bitcoin and Ethereum ETF: file inflows
The ETF sector continues to churn out spectacular numbers.
- The BlackRock Bitcoin ETF (IBIT) recorded internet inflows of 888 million {dollars} within the week ending August 15, with an AUM near 80 billion.
- The ETF ETHA by BlackRock on Ethereum recorded a day by day file with 519.8 million {dollars} (114,000 ETH) of inflows.
In whole, Ethereum ETFs attracted 2.91 billion in only one week, almost triple in comparison with Bitcoin.
This confirms the rising institutional confidence in Ethereum, fueled by restaking, Layer 2, and the enlargement of DeFi.
Even ETF on Solana (SOL) and different altcoins present progress, however the BTC vs ETH duel stays the principle barometer for traders.
Derivatives and volatility: calm earlier than expiration
Within the Bitcoin futures on the CME, the open curiosity has dropped to 138,000 BTC, the bottom within the final 4 months. An indication of decreased speculative leverage.
The image is completely different for the Deribit choices, expiring on August 22: many positions are focused on strikes between $100,000 and $110,000 for BTC, which may set off short-term volatility.
In the meantime, the funding charge on perpetual stays barely constructive, indicating a bullish sentiment, even when the momentum is cooling down.
On-chain evaluation: Ethereum and Layer 2 shine, Bitcoin beneath strain
The on-chain knowledge reveals a combined image:
- Arbitrum has reached 3.39 billion {dollars} in TVL, an annual excessive, because of the DeFi growth and yield farming on Layer 2.
- As a substitute, Glassnode reviews a rise in Bitcoin deposits on exchanges, traditionally an indicator of potential promoting pressures.
On the stablecoin entrance:
- Tether (USDT) has issued over 1 billion new tokens on Ethereum on August 15.
- USDC elevated the provision by 2.9 billion in July, bringing the entire provide to 67.5 billion.
The liquidity in stablecoin due to this fact continues to develop, representing potential gasoline for future crypto rallies.
Sector tendencies: DeFi increasing, NFT and RWA beneath statement
- DeFi: progress of TVL on Arbitrum, Base, and Optimism, with customers more and more oriented in direction of Layer 2 options.
- NFT and gaming: low volumes, however collections like BAYC and marketplaces like Blur endure.
- RWA (Actual World Belongings): protocols like Ondo Finance convey bonds and conventional belongings on-chain, capturing institutional curiosity.
Outlook of the week: three key components
Traders might want to monitor three fundamental variables:
- Powell at Jackson Gap – essential to know the course of the Fed.
- Bitcoin and Ethereum ETF – institutional flows stay the engine of liquidity.
- On-chain and stablecoin – combined indicators between confidence (rising liquidity) and dangers (BTC deposits on exchanges).
Conclusion: is the crypto market able to explode?
The week of August 18-24, 2025 might be dominated by Powell, macro knowledge, and institutional flows on ETFs.
The expansion of liquidity via stablecoin and ETFs, together with the growth of Layer 2, highlights stable foundations for the crypto market. Nevertheless, the rise in Bitcoin deposits on exchanges and geopolitical uncertainty name for warning.
In abstract: the market is filled with potential, however the coming days will inform if we are going to witness a brand new bull leg or a part of consolidation.