Crypto Market Blows Steam, Bitcoin Drops Below $115K
On August 18, the crypto market experienced turbulence as Bitcoin dipped under $115,000. Total token value fell below $4 trillion.What caused this downturn?
The main culprit is increased liquidations. Crypto exchanges are shutting down highly leveraged bets, causing massive sell-offs. CoinGlass reports 327% more liquidations in the past 24 hours. Over 131,000 traders lost their positions, including a $7.83 million loss.
Investors are also cashing out profits post-rally. This led to declines across Ripple, Ethereum, Solana, and Sui—all down by more than 5%. Small coins like Raydium and Aerodrome Finance suffered heavily.
Traders await Federal Reserve chair Jerome Powell’s speech at the Jackson Hole Symposium. Strong inflation data dashed hopes for rate cuts. Powell might adopt a cautious stance due to trump’s tariff impacts.
Ethereum’s recent surge to $4,785 indicated overvaluation. Many altcoins followed suit, becoming due for correction. As prices revert to historical norms, the crash may signal a healthier market reset.
Will the bull run end hear? Not likely. Higher exchange-traded fund inflows and potential SEC approval of crypto etfs are positive signs. The Fed could start rate cuts later this year, accelerating change by 2026 under a new leadership frontier.
