The cryptocurrency market has entered a period of correction, with its overall capitalization falling to $3.78 trillion, a 4.46% drop in the last 24 hours. The sell-off was widespread, leading to nearly $943 million in liquidations.
Bitcoin's Price Dip
Bitcoin has fallen below $110,000 after recently peaking at around $123,000. Experts view this as a healthy part of a market cycle rather than a long-term trend reversal, noting that Bitcoin is still well above its 200-day moving average. The volatility is primarily driven by large investors, or "whales," selling off their holdings, which in turn triggers panic among retail investors. As Bitcoin nears oversold conditions, analysts are looking for a potential rebound.
Altcoins Decline and Institutional Confidence
The broader altcoin market also saw significant losses. Ethereum dropped over 7% to $4,396, Solana fell 10% to $187, and other major cryptocurrencies like XRP, Binance Coin, and Cardano also saw declines. Despite the downturn, institutional interest remains strong. ETHZilla Corp, for example, purchased an additional 7,562 Ethereum, signaling long-term confidence in the asset.
Macroeconomic Context
The current market correction is happening as the U.S. Dollar Index shows weakness, a trend that typically favors cryptocurrencies. While Bitcoin's recent performance has deviated from global M2 liquidity growth, some analysts believe it will eventually realign with the broader trend, as it has in previous cycles.
August 2025, Cryptoniteuae