Bitcoin slips to $64,912 as GSR cuts Ether exposure, altcoins slide

Bitcoin traded near $64,912 on Aug. 5 as Ether and Solana extended losses after trading firm GSR trimmed its Ether exposure, deepening the 2026 crypto downturn.

GSR, a crypto market maker, cut its Ether allocation in a portfolio rebalance that left Bitcoin leading its holdings, according to the firm's positioning update. Ether fell to $1,917.44 and Solana to $74.36, CoinGecko data shows, with both tokens down more than 35 percent year to date.

The pullback comes with the Crypto Fear and Greed Index stuck in extreme fear near the mid-teens, while spot Bitcoin ETFs continued to see outflows. Bitcoin's 50-day average sits below its 200-day, keeping a death-cross signal intact that has weighed on momentum since late January.

Traders now treat $70,000 as the next line in the sand for Bitcoin; losing it could trigger forced selling. GSR's move away from Ether adds pressure on the broader altcoin market as investors reassess exposure into the second half of 2026.

GSR's Ether Trim Weighs on the Altcoin Complex

GSR's decision to cut Ether comes as Ethereum's market capitalization stands at $230.54 billion, still the largest smart-contract network but trailing its own 2025 highs. Solana, at a $46.90 billion market cap, has seen over 63 percent of its supply staked, yet its token has fallen roughly 40 percent this year as new-token issuance on the chain skews toward low-effort projects.

The rebalance is notable because GSR is a major liquidity provider across crypto venues; a reduction in one of its largest holdings can ripple through order books. Ether's slide has dragged down DeFi tokens built on Ethereum, while Solana's decline has pressured its own ecosystem names, including meme coins that drove much of the chain's earlier volume.

$70,000 Holds as the Next Bitcoin Support

For Bitcoin, the immediate technical picture centers on the $70,000 level, which traders view as the last major support before a deeper retracement. A break below that mark, with the death cross already in place and ETF flows negative, could accelerate deleveraging across the sector.

The macro backdrop offers little relief. Elevated Treasury yields and cautious Federal Reserve messaging have kept risk assets under pressure, and Bitcoin's correlation with the Nasdaq 100 remains elevated. GSR's portfolio shift, combined with persistent ETF outflows, suggests institutional money is rotating defensively rather than adding exposure.

The next catalyst is any shift in Fed rate expectations or a stabilization in ETF flows, either of which could reset the tone for Bitcoin and the altcoin complex into September.

This article is for informational purposes only and does not constitute investment advice.