Why is Crypto Market Dumping Today?
Highlights
- Bitcoin has plunged from its ATH to $115k, dragging the entire crypto market down.
- The crash triggered a $550M liquidation, led by the wipeout of Ethereum’s long position.
- Hotter than expected U.S. PPI, whales’ profit taking, and growing geopolitical tension crashed the market.
Despite the bulls’ dominance on the crypto market just days ago, traders have submitted to bears now, resulting in a massive crash today. Bitcoin, Ethereum, XRP, and the rest of the altcoins are facing a sharp correction, pushing the collective market cap down to $3.97T. In addition, BTC price has crashed to a week’s lowest point $115k, as the uncertainty and volatility grew in the crypto space.
Top Reasons Why the Crypto Market is Down Today
After setting a fresh all-time high, the crypto market seems weak today, as real signs of turbulence emerge among digital assets. Bitcoin, which recently hit a new ATH of $124.4k, has crashed down to $115k, Ethereum also declined to $4.2k, XRP marched below $3.0, and much more.
- Source: CoinMarketCap, Crypto Market Heatmap
This turbulence emerged with the release of various macroeconomic reports in the previous week.
-
Macroeconomic Events
The release of hotter-than-expected U.S. PPI data created concerns about the upcoming Fed’s decision on interest rates. Notably, investors worldwide have been awaiting September rate cuts to witness a major crypto rally.
However, despite Trump’s pressure on Powell and the experts’ suggestion, there are still doubts about potential cuts. In the list of macroeconomic factors, the upcoming U.S. retail earnings reports are adding additional volatility to digital assets.
Not to mention, Central banks are buying gold, and the asset is at its highs, resulting in capital rotation from crypto to gold. Additionally, the disappointment with the Treasury Secretary Scott Bessent’s statement is keeping the traders’ trading activity grounded.
Recently, Bessent disclosed that the U.S. is not planning to acquire any crypto assets for the Bitcoin reserve. The White House crypto policy report also missed the discussion on this reserve, influencing negative sentiments.
-
US-Russia-Ukraine Tension
After meeting with Russian President Vladimir Putin with no peace deal, Trump is now set to meet Ukraine’s President Volodymyr Zelenskyy for peacemaking and influence a ceasefire between Ukraine and Russia. There’s certain caution ahead of the meeting, resulting in traders’ sell-off.
Experts also note the bearish divergence in the RSI and MACD across top assets like Bitcoin and Ethereum.
-
Profit Taking and Technical Barriers
The top crypto assets saw massive growth in the last few days. However, as the tokens reached their peak, sellers emerged. The prime example is XRP, where 94% of its holders were in profit, creating overheated and profit-taking conditions.
In the case of Ethereum, $272M outflows were noted on August 15 after the massive inflows week. Whale On-chain data further confirmed the profit taking, with one wallet alone moving $54M worth of ETH to the exchange.
🚨 🚨 🚨 12,202 #ETH (54,663,356 USD) transferred from #FalconX to unknown wallethttps://t.co/Ka2T5BXY9g
— Whale Alert (@whale_alert) August 17, 2025
Crypto Market Crash Results in $550M Liquidation
As Bitcoin fell below the critical support of $118.8k, currently trading at $115.2k, and Ethereum followed a similar trajectory, millions have been lost from the market. CoinGlass data reveals that more than $550M has been liquidated in the last 24 hours. Traders’ mass sell-offs hit tokens, fueling long positions’ liquidation.
- Source: CoinGlass, Crypto Liquidation Heatmap
Notably, the long Ethereum position has been liquidated the most, $179M in 24 hours, followed by Bitcoin with $123M positions. Overall, 131,459 traders were affected, and the biggest single liquidation took place on Bitmex – XBTZ25, valued $7.83M
Frequently Asked Questions (FAQs)
1. Which cryptos are most affected by the crypto market crash today?
2. How much is liquidated today?
3. What are the top factors contributing to the downtrend?
- Solana Price Rallies 5% as Nasdaq-listed VisionSys Launches $2B SOL Treasury Strategy
- XRP Ledger Rolls Out MPT Standard for Real-World Asset Tokenization
- SEC Puts Crypto ETF Approvals On Hold Following U.S. Government Shutdown
- Pi Network Adds DEX and AMM Features To Expand Pi Coin’s Utility
- October Fed Rate Cut Odds Rise After Weak U.S. Labor Data, Bitcoin Surges
- Cardano Price Forecast As Hashdex Listing Fuels Optimism For $1.27 Breakout
- BONK Price Rally Ahead? Open Interest Jumps as TD Buy Signal Flashes
- Shiba Inu Price to Surge as Whales Buy and Team Commits to Shibarium Growth
- XRP Price Prediction After Ripple CTO David Schwartz Resigns
- SUI Price Eyes $4.5 as Coinbase Futures Listing Sparks Market Optimism
- Chainlink Price Holds $20 Support Amid Tokenization With DTA Standard Progress – Is $47 Next?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
