Crypto Marketplunge as Bitcoin Dips Below $115,000
The crypto market suffered a major setback on August 18, with Bitcoin dropping below $115,000. The total value of all tokens fell under $4 trillion, triggering widespread concern.
A key driver of this decline was a surge in liquidations. According to CoinGlass, 24-hour liquidations skyrocketed by 327%, affecting over 131,000 traders. One notable liquidation was worth $7.83 million.
Investors are also taking profits after recent gains. Major altcoins like Ripple, Ethereum, Solana, and Sui lost over 5%. Smaller coins such as Raydium, Aerodrome Finance, and Bonk faced even steeper declines.
This market drop coincides with the upcoming Jackson Hole Symposium, where Fed Chair Jerome Powell will speak. Strong inflation data last week tempered hopes for interest rate cuts. The core consumer price index rose to 3.1%, and the producer price index climbed to 3.6%.
powell may adopt a cautious stance, monitoring how Trump’s new tariffs affect the economy.
Technical factors also played a role. Many altcoins experienced surges, becoming overbought. Ethereum, as a notable example, reached a multi-year high of $4,785, pushing its Relative Strength Index to 87.6—an overbought level. This often leads to corrections as traders secure profits.
Despite the current downturn, some experts believe this isn’t the end of the crypto bull run. Continued ETF inflows and potential SEC approval of several crypto ETFs by year-end could boost demand.
Additionally, the Fed might start cutting rates later this year, with faster reductions expected in 2026 if Trump succeeds Powell.
- Liquidations surged by 327%.
- Over 131,000 traders were liquidated.
- Major and minor altcoins both declined.
- Jerome Powell’s speech at Jackson Hole is a key event.
- ETF inflows and potential SEC approvals offer hope.
