August 12, 2025
5 min read
@cryptonews
The cryptocurrency market is experiencing a downturn today, with only about 10 coins showing gains in the past 24 hours. The total market capitalization has dipped by 2.5%, now standing at $4.04 trillion, with a trading volume of $168 billion.
The majority of the top 100 cryptocurrencies have seen a decline. Bitcoin (BTC) has fallen below $122,000, trading at $118,947, while Ethereum (ETH) has remained relatively flat, trading at $4,292.
Despite the broader market dip, US ETH ETFs recorded a significant inflow of $1.02 billion on Monday, and US BTC spot ETFs saw inflows of $178.15 million. Key factors influencing the crypto market include upcoming US CPI data and concerns about Bitcoin's centralization by large entities like BlackRock and MicroStrategy.
Is this dip likely to be sustained?
Source: Originally published at CryptoNews on August 12, 2025. Bitcoin News: Kiyosaki Warns of Crypto Collapse, Bitcoin Dips Below $119,000
Crypto Market Declines: BTC, ETH Sector Pullbacks in August 2025
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Crypto Market AI's Take
The current crypto market dip highlights the significant influence of macroeconomic factors, particularly US economic data, on digital asset prices. As investors await the CPI figures, the market is exhibiting typical volatility. Our AI-powered tools at Crypto Market AI are designed to navigate these fluctuations by providing real-time analysis and predictive insights. We leverage advanced algorithms to help traders identify opportunities amidst market downturns and capitalize on potential uptrends. Learn more about how our AI Agents for Crypto Trading can assist you in making informed decisions in such dynamic market conditions.Crypto Winners & Losers
Five of the top 10 coins by market capitalization have decreased over the past 24 hours, while three are up (excluding stablecoins).- Bitcoin (BTC) fell 2.5% in a day, dropping below the $122,000 mark and currently trading at $118,947.
- Ethereum (ETH) is slightly green but practically unchanged, trading at $4,292.
- The largest drop among top coins is Dogecoin (DOGE), down 6%, trading at $0.2237.
- The notable gainer is Tron (TRX), up 2.1%, trading at $0.3468. Among the top 100 coins, the best performer is Pump.fun (PUMP), up 6% to $0.003623. Other coins with gains above 1% include Tron and Bitcoin Cash (BCH), which rose 2.4% to $593.99. The biggest losers include Story (IP), down 17.3% to $5.6, Pudgy Penguins (PENGU), down 12.9%, and Bonk (BONK), down 12.5%. July saw a rotation into altcoins, led by Ethereum, whose market share increased to 11.8%, according to Binance Research. Meanwhile, payments giant Stripe is reportedly developing Tempo, a Layer 1 blockchain focused on payments, in partnership with crypto venture capital firm Paradigm.
- Economic data and Federal Reserve decisions.
- Anything related to Donald Trump, including rumors, tweets, or regulatory moves.
- Elon Musk. Currently, Wall Street and global markets are hyper-focused on the Consumer Price Index (CPI) data expected today, making it one of the most critical macro factors this week.
- Why did the crypto market move with stocks today?
âUS CPI Data Could Trigger BTCâs Next ATHâ
Alice Liu, Head of Research at CoinMarketCap, highlighted three US-related factors that heavily impact crypto:Consumer Price Index (CPI) expected to be released today "could potentially trigger Bitcoinâs next all-time high or support the rally."A softer CPI could lock in expectations for a September Federal Reserve rate cut, which is generally bullish for risk-on assets like crypto. Bloomberg analysts have a wide range of predictions, some expecting significant rate cuts. This could inject liquidity into the market but may also cause volatility around the CPI release. Additionally, BTC and ETH options open interest from derivatives traders reached $43 billion and $14 billion respectively, nearing yearly highs. This could amplify volatility, so caution is advised regarding short squeezes, sudden liquidations, or sharp price moves. MicroStrategyâs BTC purchases remain relevant as indicators of Wall Street confidence, though their buying impact is decreasing as they become more cautious with leverage. However, Liu warns that centralization of BTC holdings by BlackRock and MicroStrategy raises concerns about Bitcoinâs decentralization, especially in the event of a financial crash.
Levels & Events to Watch Next
As of Thursday morning, BTC trades at $118,947. It reached an intraday high of $122,052 but plunged to a low of $118,364 before recovering slightly. BTC is still up 4% over the past seven days from a low of $112,920 and up 0.9% in a month. The market remains heavily influenced by macroeconomic factors, particularly US data. While fears about tariffs and economic health have eased, attention has shifted to this weekâs economic releases. Depending on incoming signals, Bitcoin may surge again toward its all-time high of $122,838 or drop to $110,720, potentially moving further down to $108,000. Ethereum is trading at $4,292, experiencing choppier price action than BTC over the past day. It dropped to $4,177, surged to $4,346, then fell to $4,196 before recovering. ETH is pushing toward its previous all-time high of $4,878 from November 2021. It appreciated 17% over the past week and 46% in a month, outperforming BTC. The rally coincides with an increase in companies holding ETH on their books, with 24 new entities added recently, bringing the total to 64. Onchain data from Glassnode shows traders holding ETH for less than 155 days are realizing gains faster than long-term holders, indicating possible near-term pullbacks. Crypto market sentiment has dropped slightly but remains in the greed zone, with the Fear and Greed Index at 60 today, down from 62 yesterday. The recent correction was expected after the latest rally, and a cautious approach is advised. US BTC spot ETFs recorded their fourth consecutive day of inflows, with Monday seeing $178.15 million added, bringing the total net inflow to $54.6 billion. Five funds recorded positive flows, led by BlackRock with $138.25 million, followed by Grayscale with $14.24 million. US ETH ETFs broke all positive flow records with $1.02 billion inflow on Monday, surpassing the previous high of $726.74 million from July 16. The total net inflow for ETH ETFs stands at $10.83 billion as of August 11. Eight of nine ETH ETFs recorded positive flows, led by BlackRock with $639.79 million and Fidelity with $276.9 million. Tokyo Stock Exchange-listed investment company Metaplanet bought an additional 518 BTC, bringing total holdings to 18,113 BTC. Metaplanet follows its â555 Million Plan,â aiming to purchase 210,000 BTC (about 1% of supply) by the end of 2027.Metaplanet Acquires Additional 518 $BTC, Total Holdings Reach 18,113 BTC pic.twitter.com/rKT2l2oTRj
â Metaplanet Inc. (@MetaplanetJP) August 12, 2025
Frequently Asked Questions
The crypto market saw a decline yesterday, mirroring the performance of the stock market. Major indices like the S&P 500, Nasdaq-100, and Dow Jones all closed lower. This synchronized movement often occurs as investors shift their focus between different asset classes based on prevailing economic news and expectations, such as the upcoming CPI data.Dips following rallies towards new all-time highs are a common occurrence in the cryptocurrency market. These pullbacks are often short-lived, especially if the underlying growth trend remains strong. The market's reaction to upcoming economic data like the CPI will be a key indicator of whether this dip is a temporary correction or a more significant trend reversal.Source: Originally published at CryptoNews on August 12, 2025.