Crypto market update August 14: Bitcoin nears $62K and UNI plunges 9%

The crypto market is under pressure today, August 14, as a more hawkish outlook from the Bank of Japan (BoJ), rising geopolitical tensions and weak Bitcoin ETF demand weigh on risk assets.

Bitcoin has fallen back toward $62,000, while Uniswap (UNI) is among the biggest altcoin losers. At the same time, derivatives activity has increased sharply, suggesting that traders are positioning for larger price moves.

Related: The latest weakness follows yesterday's market decline. In our previous Crypto market update August 13, we covered how Bitcoin was slipping despite lower Federal Reserve rate-hike odds, while HYPE was outperforming the broader market.

Why is the crypto market down today?

The biggest macroeconomic catalyst is the Bank of Japan's changing interest-rate outlook.

Reports indicate that the BoJ could raise interest rates at its September monetary policy meeting and potentially increase the frequency of future rate hikes.

That is important for crypto because changes in Japanese monetary policy can affect global liquidity and investor appetite for riskier assets.

The BoJ had already signaled a faster approach to rate hikes in July after the Japanese yen fell to its lowest level in roughly 40 years. The yen's weakness even prompted intervention from the U.S. government.

At the same time, the Federal Reserve is moving in the opposite direction.

Markets increasingly expect the Fed to keep its benchmark rate between 3.50% and 3.75% at its September meeting. Prediction markets now put the probability of a September hike at just 27%, following July's softer U.S. Producer Price Index data.

That creates a complicated backdrop for crypto.

The U.S. rate outlook is becoming more supportive, but tighter Japanese monetary policy could reduce global liquidity and increase volatility.

Geopolitical tensions add another risk

Geopolitical developments are also weighing on sentiment.

A drone reportedly attacked a ship near the Strait of Hormuz on August 14, while Iran has demanded that ships passing through the strategic waterway obtain permission from its military.

The incident came a day after President Donald Trump claimed that the United States had total control over the Strait of Hormuz.

The escalation is particularly important for markets because the Strait is a major global energy route.

Oil prices have already risen toward $81, increasing concerns that a prolonged geopolitical conflict could keep inflation elevated.

For crypto traders, that creates another potential headwind because higher energy prices could complicate the Federal Reserve's path toward lower interest rates.

Bitcoin ETF outflows add to selling pressure

Institutional demand also remains a concern.

According to SoSoValue data cited in the source material, U.S. Bitcoin ETFs recorded $131 million in net outflows on August 13.

Ethereum and XRP products were among the few bright spots, recording inflows of approximately $6.72 million and $2.25 million, respectively.

The lack of Bitcoin ETF demand is notable because institutional flows have become an increasingly important source of liquidity for the market.

When ETF investors reduce exposure while macroeconomic risks increase, Bitcoin can struggle to attract enough buyers to defend important technical levels.

Crypto market Data August 14

The overall market capitalization has fallen to around $2.16 trillion, while the Fear & Greed Index remains firmly in fear territory.

Derivatives activity jumps as volatility rises

Crypto derivatives markets are becoming increasingly active as prices fall.

Total open interest increased 3.38% to $119 billion on August 14. That means roughly $5 billion has been added to crypto open interest during August.

Futures trading volume has also increased 9.44% to $159 billion.

Liquidations have accelerated even more sharply.

According to CoinGlass data, total crypto liquidations jumped 59% to $252 million. Long positions accounted for approximately $135 million, while short positions saw around $117 million in liquidations.

The relatively balanced liquidation figures suggest that both bulls and bears are being caught by the market's volatility.

Long trading volume currently stands at around $23.81 billion, compared with $23.36 billion for shorts.

Bitcoin's weighted funding rate is also positive at 0.048%, while Ethereum's sits at 0.0026%.

Bitcoin price retests $62K support

Bitcoin's technical structure is becoming increasingly important.

On the four-hour chart, BTC is forming a rounded-top pattern, which can signal weakening momentum if the neckline or support level breaks.

The key support currently sits around the August 3 low of $62,560.

A four-hour close below this level could open the door to a move toward the psychological $60,000 support.

The technical indicators are also leaning bearish.

Bitcoin's RSI is at 33, showing weak short-term momentum, while a rising ADX indicates that the current downtrend is gaining strength.

However, there is another signal that could provide a more positive long-term interpretation.

CryptoQuant data shows that the percentage of Bitcoin supply currently in profit has fallen to 51.4%, its lowest level in more than three years.

Analyst EgyHash interprets the decline as a potential sign that Bitcoin could be moving toward a bottom.

That creates an interesting conflict in today's market.

Short-term indicators are bearish, but the decline in profitable Bitcoin supply could suggest that a larger reset is taking place.

UNI leads altcoin losses despite bullish Standard Chartered outlook

Uniswap is among today's biggest altcoin losers.

UNI has fallen approximately 8.58% to $3.21, extending a broader decline that has intensified since the token formed a death cross on August 7.

The token is now down around 21% since that signal appeared.

If selling continues, UNI could fall below $3, a level it has not traded beneath since July 2.

The decline is particularly notable because Standard Chartered analyst Geoff Kendrick recently suggested that his previous $100 UNI price target for 2030 was too conservative.

In other words, UNI's current short-term weakness is happening despite a highly bullish long-term institutional view.

UNI's RSI is currently around 33, putting the token close to oversold territory.

That could eventually give buyers an opportunity to step in.

However, bulls still need to prove that momentum is changing.

The first important level to watch is the 50-day simple moving average around $3.59.

A move back above that level would provide an early signal that the current downtrend is weakening.

What happens next for the crypto market?

The crypto market is facing several competing forces.

On the bearish side, the BoJ's potentially faster rate-hike cycle, geopolitical tensions around the Strait of Hormuz, weak Bitcoin ETF flows and rising liquidations are creating pressure on risk assets.

Bitcoin is now approaching a critical technical level around $62,560.

A break below that support could put $60,000 back in focus.

At the same time, there are reasons not to become overly bearish.

U.S. rate-hike expectations remain low, Bitcoin's profitable supply has fallen significantly, and some altcoins are approaching oversold conditions.

The next few trading sessions could therefore be important.

For Bitcoin, the immediate question is whether buyers can defend the $62,560 support.

For UNI, traders will be watching whether the token can stabilize above $3 and eventually reclaim the $3.59 50-day SMA.

For the broader market, investors will continue watching central-bank policy, geopolitical developments and ETF flows.

For now, Bitcoin is back at the $62,000 area, while the crypto market remains in fear mode. Whether this becomes another correction or the beginning of a deeper market reset will depend heavily on how BTC responds to the $62,560 support.