Bitcoin News Today: Bitcoin Tumbles to 6-Week Low as Crypto Market Loses $200 Billion

The global crypto market experienced a significant downturn in late August 2025, with the total market capitalization losing approximately $200 billion amid a sharp decline in Bitcoin’s price. On August 24, Bitcoin fell to a six-week low, pushing the overall market value below $4 trillion for the second time in recent weeks [1]. The price drop marked a continuation of a downward trend that had been developing after Bitcoin touched an all-time high in mid-August [2].

Bitcoin’s decline was abrupt and volatile. After briefly surging to over $117,000 following remarks by Federal Reserve Chair Jerome Powell at the Jackson Hole symposium, the price quickly retraced to around $115,000 over the weekend. However, a sharp drop occurred on Sunday evening, with Bitcoin falling below $111,000—a level not seen since July 10 [1]. By the time the market was reviewed, the price had dipped further, settling below $112,000 with bears firmly in control. Its market dominance remains at just over 56%, while the overall market cap has contracted to $3.930 trillion [1].

The downturn also affected other major cryptocurrencies. Ethereum, which had reached a new all-time high of $4,950 earlier in the week, dropped to just over $4,600 within 24 hours. XRP, which had struggled to hold its key support level, fell below $3. A broader list of altcoins—including SOL, ADA, TRX, DOGE, XLM, and LINK—also recorded significant declines, with some losing up to 7-8% in a single day [1]. The cumulative market capitalization of all crypto assets has fallen by roughly $200 billion since August 23.

The volatility in Bitcoin’s price was notably amplified by remarks made by Federal Reserve Chair Jerome Powell during the Jackson Hole symposium, which triggered sharp swings in both equity and crypto markets [3]. While the Fed’s dovish stance on potential rate cuts later in the year initially boosted investor sentiment, the subsequent consolidation phase led to profit-taking and a reversal in momentum. On the 4-hour chart, Bitcoin rebounded temporarily from lows near $112,000 to $116,500, but failed to sustain the upward movement [4].

Analysts have pointed to several potential factors influencing the market. A Harvard economist who had previously predicted Bitcoin would fall to $100 admitted that his forecast had not materialized, instead acknowledging the failure in the face of ongoing market turbulence [5]. Additionally, slowing demand and investor behavior—particularly a tendency to lock in profits—have played a role in Bitcoin’s recent cooling off period [6].

Despite the short-term losses, the broader crypto landscape remains characterized by uneven performance across asset classes. Ethereum, for example, has delivered a year-to-date gain of 42%, outpacing Bitcoin’s recent struggles [7]. However, the broader market’s inability to hold key resistance levels has led to heightened uncertainty among traders, with some suggesting that further volatility is likely in the coming weeks [1].

The drop in Bitcoin’s price has also led to increased liquidations in leveraged positions. On August 23, nearly half a billion dollars worth of short positions were liquidated as bulls began to take control, reflecting the ongoing tug-of-war between bullish and bearish market participants [7]. This highlights the heightened leverage and sensitivity in the current market environment.

The decline in Bitcoin’s price has underscored the challenges facing the crypto market amid broader macroeconomic uncertainties. While Fed policies remain a primary driver of investor sentiment, the crypto market’s sensitivity to news events and technical levels continues to amplify its inherent volatility.

Sources:

[1] "Crypto Markets Lose $200 Billion as Bitcoin’s Price Tumbled to 6-Week Low: Market Watch", CryptoPotato, https://cryptopotato.com/

[2] "Harvard Economist Admits $100 BTC Prediction Fail", FastBull, https://m.fastbull.com/news-detail/harvard-economist-admits-100-btc-prediction-fail-blames-news_6100_0_2025_3_9016_3

[3] "Powell Sparks $300M Surge Into Bitcoin Futures Within ...", Mitrade, https://www.mitrade.com/insights/news/live-news/article-3-1063753-20250823

[6] "The future of crypto in the Asia-Middle East corridor lies ...", FastBull, https://www.fastbull.com/news-detail/the-future-of-crypto-in-the-asiamiddle-east-news_6100_0_2025_3_9067_3

[7] "Almost half a billion shorts liquidated as bulls take over, ...", Reddit, https://www.reddit.com/r/CryptoCurrency/comments/1mxxku1/almost_half_a_billion_shorts_liquidated_as_bulls/