The Great Contradiction: Friday delivered a fascinating market paradox - broad crypto selloff with BTC falling to $108,287 and ETH to $4,321, yet the Altcoin Index surged from 50 to 58, suggesting altcoins are showing relative strength during the broader weakness.

Most striking: institutional flows completely reversed with BTC capturing $178.9M versus ETH's tiny $39.1M - a 4.6:1 ratio that demolishes the week's ETH dominance narrative. The S&P Cryptocurrency Broad Digital Asset Index fell -0.61% daily but remains up +15.08% YTD, showing underlying strength despite near-term weakness.

Market cap bled $140B to $3.76T as late-summer pullback dynamics intensify ahead of September's historically weak performance period.

TRANSLATION: Altcoin strength emerges as institutional flows collapse and rotate to BTC

BTC Flow Reversal: 4.6:1 Dominance Returns

Bitcoin captures $178.9M vs ETH's $39.1M - complete institutional preference flip

Total flows collapse 44% to $218M as institutions flee risk ahead of September seasonality

Altcoin Index Surge: 58 Despite Bloodbath

Index jumps from 50 to 58 showing altcoin relative strength during major cap weakness

Signals potential alt season building despite broader market correction - contrarian strength

Altcoin Strength Amid Chaos: Friday's most fascinating development wasn't the $140B market cap bleed, but the Altcoin Index surge to 58 despite broad weakness. This suggests altcoins are gaining relative strength versus major caps, potentially signaling early altcoin season dynamics emerging through the correction.

Institutional Flight to Safety: The dramatic institutional flow reversal - BTC's $178.9M versus ETH's tiny $39.1M - represents institutions fleeing to perceived safety amid late-summer selloff pressures. Total flows collapsing 44% to $218M signals institutional caution ahead of September's historically weak performance period.

Weekly Correction Intensifies: Friday's red across all major assets - BTC -3.55%, ETH -3.42%, XRP -5.00% - represents classic end-of-week profit-taking amplified by month-end positioning. Fear & Greed holding at 47 shows sentiment resilience despite price weakness, suggesting correction may be technical rather than fundamental.

Friday's Paradox: Altcoin Strength Emerges Through Selloff

Friday delivered crypto's most intriguing contradiction yet: broad selloff with $140B market cap bleed while Altcoin Index surged to 58, suggesting altcoins gaining relative strength versus major caps during weakness. This pattern often precedes alt season phases where capital rotates from large caps toward higher-risk, higher-reward assets.

Institutional flows completely reversed from the week's ETH dominance to BTC's 4.6:1 advantage ($178.9M vs $39.1M), indicating flight-to-safety positioning ahead of September's historically weak crypto performance. Total flows collapsing 44% to $218M signals institutional risk-off stance, yet Fear & Greed holding at 47 shows underlying sentiment resilience despite technical selling pressure.

Bottom Line: Altcoin relative strength emerging through correction suggests market dynamics shifting toward broader crypto participation despite near-term weakness.

No major regulatory developments globally today

• 📊 September 2: Labor Day holiday - reduced trading volumes expected
• 🎯 September 6: Non-farm payrolls - critical Fed policy input
• 🌏 September 9-13: Korea Blockchain Week 2025 - Asia's largest Web3 festival in Seoul
• 🏛️ September 16-17: FOMC meeting - Fed rate decision from current 4.25-4.50% range

Current Market Environment: Moderate Risk - September Seasonality Begins

Weekly correction intensifying with institutional flows collapsing 44% ahead of September's historically weak crypto performance period. Altcoin Index surge to 58 provides positive signal, but $140B market cap bleed and institutional flight-to-safety suggest caution warranted near-term.