The shakeup also impacted FedWatch data, which showed odds of a September rate cut sliding from 99% to 83%. Fed Chair Jerome Powell’s upcoming Jackson Hole address, which may provide clearer guidance on the Fed’s plans to navigate the inflationary environment, is now the focus of all attention. Investors are bracing for hawkish signals, especially as the Fed remains wary of committing to cuts too soon.

Amid all this, corporate treasury desks remain undeterred. Strategy, the firm led by Bitcoin evangelist Michael Saylor, added another 430 BTC worth $51 million to its balance sheet, boosting its total holdings to 629,376 BTC, valued at $72 billion. Despite scaling back from billion-dollar buys, Saylor continues to redirect equity raises into Bitcoin, consolidating his long-term bullish stance even amid a Bitcoin price drop.

On the Ethereum side, Bitmine has emerged as a treasury titan, reporting $6.6 billion in Ether holdings. The move cements Bitmine as the second-largest corporate holder of ETH, behind Strategy’s BTC dominance. The Ether Machine and SharpLink Gaming are also scaling up, showing that Ether’s appeal among corporates is catching fire.

The market reaction has not been uniform. Some altcoins, particularly those in the Layer-2 ecosystem, have managed to hold steady or even notch modest gains. Analysts suggest this reflects a selective flight to quality within crypto assets, with investors favoring projects with real utility or strong DeFi integration. Still, liquidity remains thin, and high-beta tokens have suffered outsized volatility.

Meanwhile, the divergence in ETF inflows between Ether and Bitcoin signals a potential narrative shift. As Ethereum continues its evolution into a yield-bearing, deflationary asset post-merge, institutions appear increasingly comfortable allocating capital to ETH products. This week’s record-breaking $2.8B inflow into Ether ETFs is a strong endorsement, even as the broader market struggles.

In a week defined by high inflation anxiety and divergent flows, the Bitcoin price drop tells a story of a market in flux. Yet underneath the volatility, institutional conviction especially for Ether remains strong. The smart money, it seems, isn’t flinching. While retail sentiment wavers with each macro data release, the long-term bet on crypto as a hedge and alternative asset class is quietly intensifying.

With Powell’s speech on deck and further inflation data due, all eyes remain on the macro calendar. But one thing is certain: despite the headlines, the era of institutional crypto is only accelerating.