Why is The Crypto Market Down Today?

TLDR

• Total crypto market cap fell by $75 billion to $3.86 trillion
• Bitcoin trades at $115,902, showing resilience at the $115,000 support level
• PUMP token dropped 15% to $0.003074 in 24 hours
• Japanese construction firm LibWork approved purchase of ¥500 million ($3.4 million) in Bitcoin as treasury asset
• Market sentiment remains cautious ahead of Jackson Hole symposium where Fed Chair Powell will speak

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The cryptocurrency market experienced a notable decline on August 19, 2025, with the total market capitalization dropping by $75 billion to reach $3.86 trillion. Despite the broader market downturn, Bitcoin has maintained its position above the critical $115,000 support level.

Bitcoin is currently trading at $115,902, showing resilience in the face of market fluctuations. The leading cryptocurrency swung between $114,993 and $117,620 on August 18, with trading volumes far above average.

If the current bearish trend persists, Bitcoin’s price might drop below the $115,000 support level toward the $112,526 support. However, improved market conditions could help Bitcoin regain the $117,261 level, potentially setting the stage for a rise toward $120,000.

The total crypto market cap now stands at $3.86 trillion, reflecting increasing uncertainty among investors. Should the bearish trend continue, market capitalization could decline further to $3.81 trillion or even test lower levels near $3.73 trillion.

In contrast, positive sentiment shifts could enable the total market cap to regain $3.89 trillion. Increased buying pressure pushing past $3.94 trillion might accelerate growth toward the $4.01 trillion mark.

Among altcoins, Pump.fun (PUMP) emerged as one of the worst performers, falling by over 15% in 24 hours. The token is currently trading at $0.003074, holding just above the $0.002921 support level.

Institutional Interest Remains Strong

Despite the market downturn, institutional interest in cryptocurrencies remains robust. Japanese construction firm LibWork Co. has approved the purchase of ¥500 million ($3.4 million) in Bitcoin as a treasury asset, marking a key step in corporate adoption of Bitcoin in Asia.

The company plans to acquire Bitcoin gradually over the coming months as a hedge against inflation, joining other corporations that have added Bitcoin to their balance sheets.

VanEck has reiterated its $180,000 year-end Bitcoin target, suggesting that institutions are positioning for continued growth even as retail participation remains limited.

Strategy Inc. made an additional purchase of 430 BTC, highlighting the strong institutional conviction in the cryptocurrency market despite retail hesitancy.

Market Sentiment and Technical Indicators

Market sentiment remains cautious ahead of the Jackson Hole symposium, where Federal Reserve Chair Jerome Powell is expected to address policy concerns under the pressure of higher-than-expected inflation.

Derivatives positioning shows signs of caution, with perpetual funding rates turning negative over the weekend, a setup that has preceded earlier market pullbacks. Options skews now favor puts across maturities, indicating defensive positioning ahead of Powell’s speech.

The US Securities and Exchange Commission (SEC) has delayed decisions on three major crypto ETFs, pushing review deadlines to October. These extensions affect ETFs from NYSE Arca, 21Shares, and Bitwise, continuing the SEC’s pattern of delaying ETF rulings throughout the summer.

Meanwhile, Ethereum (ETH) is trading at $4,322, down 3.8% in the last 24 hours but still up 2.6% on the week. The CoinDesk 20 index, which tracks the largest crypto assets, has declined by 2.4%.

Polymarket odds suggest traders are preparing for weakness through the end of August. The most likely outcome for Bitcoin is now a close below $111,000 with a 34% probability.

With crypto search interest at a four-year high and the GENIUS Act moving through Washington regulatory channels, the foundation for a broader rally continues to develop, though current price action indicates that conviction remains concentrated at the top of the market.

The crypto market appears structurally supported by institutional investors while facing short-term caution from traders awaiting clarity from the upcoming economic discussions.

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